Gold prices rose on Thursday after weaker-than-expected US private employment data and lower oil prices eased inflation concerns, while investors awaited the closely watched US nonfarm payrolls report for further clues on the Federal Reserve’s interest rate path.
Spot gold climbed 1.1% to US$4,074.65 an ounce, while US gold futures for August delivery edged 0.1% higher to US$4,087.
The precious metal rebounded after the ADP National Employment Report showed US private payrolls increased by 98,000 jobs in June, below economists’ expectations of 118,000. The softer data fuelled hopes that labour market conditions may be easing ahead of the official payrolls report later on Thursday.
Federal Reserve Chair Kevin Warsh also said inflation expectations and risks had eased in recent weeks, while reiterating the central bank’s commitment to its 2% inflation target. Markets are currently pricing in around a 66% probability of a rate hike in September.
Oil prices also weakened following indirect talks between the US and Iran over the Strait of Hormuz, reducing immediate inflation concerns and providing additional support for bullion.
RHB Investment Bank said COMEX gold has staged a rebound after finding support at the US$4,000 level, suggesting the precious metal could continue consolidating around the psychological threshold in the near term.
However, the research house maintained a negative trading bias, noting that the 20-day and 50-day simple moving averages continue to trend lower. It said a decisive break below US$4,000 could accelerate selling pressure towards US$3,700, while resistance is seen at US$4,400 followed by US$4,650.
Other precious metals also advanced, with spot silver rising 1.5% to US$60.03 an ounce, platinum gaining 2.4% to US$1,614.80 and palladium climbing 2.1% to US$1,234.89.
