Gold little changed as US jobs data looms

[BENGALURU] Gold prices held steady on Thursday ahead of the US non-farm payrolls data that is crucial to the Federal Reserve's tapering plan, even as a private payrolls report missed expectations.

Spot gold was steady at US$1,814.54 per ounce by 1.12am GMT.

US gold futures were little changed at US$1,817.20.

The dollar index hovered near multi-week lows.

The National Employment Report by payroll processor ADP showed US private employers hired far fewer workers than expected in August, but the labour market continued to steadily recover.

The Labor Department will release the non-farm payrolls report for August on Friday. Fed chief Jerome Powell said last week the labour market recovery would determine the timing of the asset purchase tapering.

Gold is considered a hedge against inflation and currency debasement, caused by massive stimulus measures.

Meanwhile, global factory activity lost momentum in August as the coronavirus pandemic disrupted supply chains, raising concerns faltering manufacturing would add to economic woes caused by slumping consumption, surveys showed on Wednesday.

The euro zone economy is recovering from the pandemic and only needs "surgical" support targeted at sectors that are still struggling, European Central Bank President Christine Lagarde said in an interview published on Wednesday.

Silver was flat at US$24.17 per ounce, while platinum fell 0.6 per cent to US$996.53. Palladium eased 0.2 per cent to US$2,437.99.

REUTERS