Gold prices steady ahead of US jobs data

GOLD prices held steady on Thursday (Jan 5), hovering close to a near seven-month high scaled in the previous session, while market participants prepared for US jobs data that could influence the Federal Reserve’s policy trajectory.

Spot gold held its ground at US$1,854.89 per ounce, as of 0042 GMT. Prices rose as much as 1.4 per cent to their highest level since Jun 13 touched in the prior session.

US gold futures edged 0.1 per cent higher at US$1,860.50.

The ADP National Employment Report is due at 1315 GMT. This will be followed by the US Labour Department’s closely watched nonfarm payrolls (NFP) data on Friday.

All officials at the Fed’s Dec 13-14 policy meeting agreed the US central bank should slow the pace of its aggressive interest rate hikes, the minutes showed on Wednesday.

Bullion is seen as an inflation hedge, but higher interest rates tend to weigh on non-yielding gold.

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Gold prices flat as traders brace for US Fed minutes

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Eurozone business activity contracted less than initially thought at the end of last year, according to a survey that suggested the bloc’s recession may not be as deep as expected.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.09 per cent to 916.77 tonnes on Wednesday.

Spot silver rose 0.3 per cent to US$23.81, while platinum lost 0.3 per cent to US$1,075.40 and palladium fell 0.3 per cent to US$1,783.60. REUTERS