💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

PRECIOUS-Gold steady ahead of U.S. payrolls

Published 09/02/2011, 02:47 AM
C
-
PMC
-
GC
-
SI
-
PA
-
PL
-
BIG
-
FTNMX551030
-

* Gold rangebound as investors wait for clear direction

* Coming up: U.S. Aug. non-farm payrolls; 1230 GMT (Updates prices)

By Rujun Shen

SINGAPORE, Sept 2 (Reuters) - Gold prices held steady on Friday as investors stood on the sidelines ahead of a key U.S. payrolls report due later in the day, after recent data sent mixed signals about the status of the world's largest economy.

Caution is likely to prevail before the key U.S. August employment report is released at 1230 GMT. Nonfarm payrolls are expected to have increased 75,000, slowing from July's 117,000 rise, according to a Reuters survey.

A big surprise in the jobs data could move gold prices up or down. Short of a huge discrepancy with forecasts, however, many players will continue to try to ride the middle ground.

"Gold seems to have a trading band of $1,810 and $1,840, and is unlikely to break the range ahead of the payrolls data," said David Thurtell, a Citigroup analyst.

Spot gold edged up 0.3 percent to $1,829.21 an ounce by 0634 GMT, little changed from a week earlier.

U.S. gold inched up 0.2 percent to $1,832.30, headed for a weekly gain of 1.9 percent.

Investors will keep an eye on inflation figures from China next week to gauge the progress of Beijing's battle against rapidly rising prices, while a two-day policy meeting of the U.S. Federal Reserve starting Sept. 20 will also be in the spotlight.

Financial market participants are eager to learn if the Fed plans to launch more stimulus plan to spur the ailing economy.

Latest data showed unexpected growth in the U.S. manufacturing sector in August and fewer jobless claims last week, despite a slump in confidence that threatened to push the economy back into recession.

Uncertainties around global growth have sent anxious investors to the safety of gold. Bullion prices surged about $400 in July and August in a record-setting rally.

"Given the current economic circumstances, I don't think anything is going to change any time soon," said Gavin Wendt, senior resources analyst at Minelife, an Australia-based research firm.

"Gold is the place to be as far as investors are concerned. Prices are going higher -- there's no doubt about that. It's not only about making money in this environment, but also about wealth preservation."

Spot silver gained 0.4 percent to $41.60, headed for a 0.2 percent rise from a week earlier.

Bolivia, the world's sixth-largest silver producing country by output in 2010, plans to raise mining royalties to take advantage of high prices and bolster the state's role in the industry.

Precious metals prices 0634 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1829.21 4.66 +0.26 28.87 Spot Silver 41.60 0.16 +0.39 34.80 Spot Platinum 1842.49 -1.36 -0.07 4.24 Spot Palladium 779.99 0.64 +0.08 -2.44 TOCOM Gold 4527.00 29.00 +0.64 21.40 52087 TOCOM Platinum 4594.00 -32.00 -0.69 -2.17 9819 TOCOM Silver 102.60 0.80 +0.79 26.67 474 TOCOM Palladium 1947.00 -5.00 -0.26 -7.15 943 COMEX GOLD DEC1 1832.30 3.20 +0.17 28.91 8659 COMEX SILVER DEC1 41.68 0.14 +0.34 34.70 1368 Euro/Dollar 1.4237 Dollar/Yen 76.81 TOCOM prices in yen per gram. Spot prices in $ per ounce. COMEX gold and silver contracts show the most active months (Editing by Himani Sarkar)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.