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Gold prices were flat on Thursday, as markets awaited key US jobs data to gauge the Federal Reserve's next policy move. Brendon Thorne | Bloomberg | Getty Images Gold prices were flat on Thursday, as markets awaited key US jobs data to gauge the Federal Reserve's next policy move. Spot gold steadied at $4,155.65 per ounce, as of 0205 GMT.
US gold futures were flat at $4,185.40. The crucial US nonfarm payrolls report for September is scheduled for release on Friday. The US dollar held firm, supported by an extended rise in US Treasury yields.
A stronger greenback makes dollar-priced metals costlier for holders of other currencies. "The PCE data gave gold some lift, but that move faded due to the relentless rise in yields. Incoming data is going to be important to watch to see how the market deals with it and shapes rate hike expectations," said Ilya Spivak, head of global macro at Tastylive.
"We are in a situation where the market is dealing with a lot of conflicting forces." Data on Wednesday showed US inflation rose less than expected in August, and price pressures were more moderate in the prior month than previously reported. Gold prices briefly climbed following the data release but closed lower by the end of the session. The data trimmed expectations for an October Fed rate hike, but traders see an 87% chance of a December rate increase.
Higher interest rates reduce gold's appeal because it yields no interest. Spot gold prices fell more than 6% in September. All of gold's "September losses are unlikely to be recovered, but there are reasons to believe that the worst of the correction is over for now and that there is a case for higher prices," said Bart Melek, global head of commodity strategy at TD Securities.
On the geopolitical front, Iran said on Wednesday it had received a US response to its latest proposal to resurrect the collapsed ceasefire in the Gulf, days after President Donald Trump said he had rejected it. Spot silver rose 0.5% to $60.69, platinum added 0.1% at $1,708.43 and palladium fell 0.3% to $1,200.15.
Source: CNBC
