Gold steady on caution ahead of US jobs data

[BENGALURU] Gold prices held steady on Wednesday as investors awaited a key US jobs report for clues on when the Federal Reserve might start reducing its pandemic-era stimulus measures.

Spot gold was steady at US$1,813.93 per ounce by 1.09am GMT.

US gold futures were down 0.2 per cent to US$1,815.10.

The dollar index clawed 0.1 per cent higher, having hit a more than three-week low on Tuesday.

Friday's US nonfarm payrolls data is expected to help shape the Fed's stance on monetary policy.

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

US consumer confidence fell to a six-month low in August as worries about soaring Covid-19 infections and higher inflation dimmed the outlook for the economy.

Euro zone inflation surged to a 10-year high this month with further rises still likely to come, challenging the European Central Bank's (ECB) benign view on price growth and its commitment to look past what it deems a transient increase.

ECB policymaker Robert Holzmann called for reducing the central bank's emergency bond purchases as soon as next quarter, adding he expected a discussion on the matter next week.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 1,000.26 tonnes on Tuesday, its lowest level since April 2020.

Silver was flat at US$23.88 per ounce, while platinum rose 0.3 per cent to US$1,015.49. Palladium climbed 0.5 per cent to US$2,479.06.

REUTERS