BENGALURU- Gold prices inched higher on Monday, supported by a softer dollar, while investors awaited a slew of US economic data including the December nonfarm payrolls report for further guidance on the Federal Reserve’s interest rate stance.
Spot gold rose 0.2 percent to $2,643.69 per ounce. US gold futures climbed 0.1 percent to $2,656.80.
“A subdued start to the week by the US dollar is helping gold to eke out some gains,” said Tim Waterer, chief market analyst at KCM Trade.
How the US jobs data fares this week could hold the key to whether gold breaks out of its recent range, he said, adding that: “There is a plethora of US data due for release this week (including ISM Services PMI data), and any downside misses could hurt the USD and help gold.”
The US jobs report, due on Friday, is expected to provide more clues to the Fed’s rate outlook after the US central bank rattled markets last month by reducing its projected cuts for 2025.
Investors are also awaiting ADP hiring and job openings data, as well as minutes of the Fed’s last policy meeting, for further direction.
