Singapore, Jan. 5 (BNA): Gold prices rose on Thursday, supported by a weaker dollar, while market participants braced for US jobs data that could influence the Fed’s policy path.
Spot gold rose 0.1% to $1,856.11 an ounce, as of 0302 GMT, after hitting a nearly seven-month high in the previous session. US gold futures also rose 0.1% to $1,861.20, according to Reuters reports.
The dollar index fell 0.1%, making dollar-denominated bullion more attractive to foreign investors.
said Brian Lan, managing director of Singapore-based dealer GoldSilver Central.
“If the jobs data reflects that higher interest rates have affected the economy, the dollar could weaken further and benefit gold.”
The ADP National Employment Report is due at 1315 GMT. This will be followed by the closely watched US Labor Department non-farm payrolls (NFP) data on Friday.
Minutes of the Federal Reserve’s December monetary policy meeting were released on WednesdayY showed that all officials agreed that the US central bank should slow down the pace of sharp interest rate increases.
Meanwhile, Minneapolis Federal Reserve Bank President Neel Kashkari said on Wednesday that the Fed should continue to raise interest rates at its next few meetings at least until it is sure that inflation has peaked.
Bullion is seen as a hedge against inflation and economic uncertainties, but higher interest rates tend to affect gold which does not generate a return.
In other precious metals, spot silver settled at $23.74, while platinum rose 0.2% to $1,080.88, and palladium rose 0.3% to $1,793.38.