Gold prices gain in Asia as market notes patience by Fed on higher rates

Investing.com - Gold prices posted modest gains early Thursday in Asia as investors noted the Federal Reserve did not seem aggressive on the timing of a widely expected hike in interest rates this year.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery rose 0.18% to $1,212.90 a troy ounce.

According to minutes of the Fed's December meeting minutes, the central bank pressed ahead with plans to begin raising interest rates later this year, although Fed officials said they could be "patient" in deciding when to begin the process.

Overnight, gold futures fell to the lowest levels of the session on Wednesday, after data showed that U.S. non-farm private employment rose more-than-expected in December.

A day earlier, gold hit $1,223.30, the most since Dec. 16, before settling at $1,219.40, up $15.40, or 1.28%, as safe-haven demand was boosted amid growing fears that Greece might exit the euro zone.

Also on the Comex, silver futures for March delivery rose 0.22%, to trade at $16.580 a troy ounce.

Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 241,000 last month, above expectations for an increase of 226,000.

The economy created 227,000 jobs in November, whose figure was upwardly revised from a previously reported 208,000.

While not viewed as a reliable guide for the government jobs report due on Friday, Jan. 9, it does give guidance on private-sector hiring.

Investors now looked ahead to the minutes of the Federal Reserve’s December meeting, due out later in the day, which were expected to provide further indications on the future direction of monetary policy.

Gold lost nearly 2% in 2014 amid indications a strengthening U.S. economic recovery will force the Fed to start raising interest rates sooner and faster than previously thought.

Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

Elsewhere in metals trading, copper for March delivery inched up 0.10% to trade at $2.765 a pound.