India, Sep 03 : Gold prices remained largely unchanged in early Asian trading on Thursday as investors turned their attention to the upcoming US nonfarm payrolls report, which could influence expectations for the Federal Reserve’s next interest-rate decision.
Spot gold was steady at $4,386.28 an ounce by 0046 GMT, after recovering from a nearly one-month low in the previous session. The rebound came as the US dollar and Treasury yields eased from recent highs.
US gold futures for December delivery advanced 0.4% to $4,432.10.
US employment data in focus
Investors are closely watching Friday’s nonfarm payrolls figures for indications about the strength of the US labour market and the likely direction of monetary policy.
The ADP National Employment Report released earlier showed that private-sector payrolls increased less than economists had anticipated in August, adding to uncertainty surrounding the employment outlook.
A mixed assessment from the Federal Reserve also offered limited clarity. The report indicated that US economic activity expanded modestly in recent weeks, while employment edged higher and prices rose at a moderate pace.
Markets are closely monitoring these indicators ahead of the Federal Reserve’s September 15-16 meeting. According to the CME FedWatch Tool, traders were pricing in a 62% probability of a US rate hike this month.
Gold generally benefits from inflation concerns and lower interest rates, while elevated borrowing costs can weigh on demand for the non-yielding metal by increasing the opportunity cost of holding bullion.
Geopolitical risks support bullion
Geopolitical tensions also remained a factor for precious metals. Concerns about renewed escalation in the Middle East intensified after the United States and Iran exchanged their largest barrage since July, with Washington striking Iran’s southern coast and Tehran launching attacks against US bases in the region.
Meanwhile, the Dutch central bank said it had transferred a significant portion of its gold holdings from North America to London over the past six months. The move was aimed at improving preparedness for a potential crisis amid heightened geopolitical uncertainty.
Other precious metals
Among other metals, spot silver was little changed at $65.30 an ounce, while platinum held at $1,760.33. Palladium slipped 0.1% to $1,344.48.
Key economic data ahead
Markets will also track a series of economic indicators on Thursday, including China’s RatingDog Services PMI for August, services and composite PMI figures from France, Germany, the euro zone and the UK, as well as US trade data, initial jobless claims, S&P Global PMI readings and the ISM non-manufacturing PMI.