Gold holds above US$1,800 on weaker yields as job data disappoints

[BENGALURU] Gold prices were little changed above the key US$1,800 per ounce level on Thursday (Feb 3), as US Treasury yields retreated after a dip in US jobs data.

Spot gold was flat at US$1,807.39 per ounce by 12.49 am GMT. US gold futures fell 0.1 per cent to US$1,808.

The dollar was slightly up, yet held around the lows after the private payrolls data, and US Treasury yields inched slightly lower after the employment data.

US private payrolls fell for the first time in a year in January as soaring Covid-19 infections disrupted business operations.

Investor focus now shifts to European Central Bank and Bank of England meetings on Thursday for cues on the pace of monetary policy tightening amidst soaring inflation.

Although gold is considered a hedge against geopolitical risks and inflation, interest rate hikes would raise the opportunity cost of holding non-yielding bullion.

Bank of Canada Governor Tiff Macklem said there was uncertainty about how quickly inflation would come back down into the central bank's comfort zone, due to the unique nature of the pandemic.

The US will send extra troops to shield Eastern Europe from a potential spillover from the massing of Russian troops near Ukraine, US officials said on Wednesday.

Spot silver fell 0.1 per cent to US$22.59 an ounce and platinum was little changed at US$1,032.98, while palladium fell 0.5 per cent to US$2,357.17. REUTERS