Gold steadies above $1,110
Gold prices steadied on Wednesday after hitting their highest level in almost two weeks the previous day, when investors partly factored in expectations of strong U.S. jobs data later this week.
Spot gold inched up 0.1 percent to $1,114.88 per ounce by 0606 GMT compared to New York’s notional close of $1,113.95.
Gold hit $1,117.95 on Tuesday, its highest since January 20.
U.S. gold futures for April delivery were down 0.2 percent at $1,115.60 an ounce after rising $13 on Tuesday on the COMEX division of NYMEX.
“If the non-farm payrolls data outperforms then I believe people will be more positive about the U.S. economy and we’ll see more risk-taking,” said Wong Eng Soon, an investment analyst at Phillip Futures Pte in Singapore.
Gold prices are barely moving now as some investors have already taken more risk on a buildup of expectations for better payroll figures, resulting in a rally in gold and other commodities on Tuesday, Wong said.
U.S. economic data to be released on Wednesday, including the ADP national private-sector employment report, are also awaited as investors try to ascertain if U.S. nonfarm payrolls grew or shrank in January.
The payrolls figures are due on Friday.
A Reuters poll of economists gave a median estimate of 5,000 jobs added to U.S. nonfarm payrolls in January after a reported 85,000 job losses in December. Forecasts for January ranged from a loss of 97,000 jobs to growth of 100,000 jobs.
The renewed focus on jobs by President Barrack Obama in his State of the Union address has made the data even more closely watched.
In the currency market, the dollar steadied on Wednesday, halting declines from six-month highs against a basket of currencies marked on Monday.
Strong corporate earnings and improving economic data had encouraged investors to move from the dollar into riskier assets and currencies where returns are higher.
“The sustained break above the key $1,000/oz level came in early September, with record highs being tested repeatedly over the remainder of 2009,” Aram Shishmanian, chief executive officer at the World Gold Council, said in a report.
“The current trading range should not be regarded as an overnight spike, but the result of a measured rise, supported by favourable and robust gold fundamentals,” he said.
But recent market weakness was reflected in steady holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust. They stood at 1,111.922 tonnes as of February 2, unchanged since January 19.
Source: Reuters