Gold climbed on the last day of the trading week before the release of the US jobs data, while traders evaluate the outlook for the metal’s physical demand against speculation the Federal Reserve (Fed) may reduce stimulus further.
Gold Futures for February delivery rose 0.52% higher to $1,235.70 an ounce at the time of writing, while silver futures gained 0.41% standing at $19.765 an ounce at the same time. Platinum climbed 0.4% to $1,423.75 an ounce, trading towards a third weekly advance.
In China, the premium for the yellow metal advanced to $31.21 an ounce on January 7, the highest in two weeks.
Gold – Fed Minutes
Minutes from the Federal Reserve’s (Fed) December meeting showed that officials supported tapering its stimulus, however some of the officials suggested the move was premature. Most members recommended the central bank should reduce its asset buying program even further.
In the last Fed meeting, Fed Chairman Ben S Bernanke confirmed the central bank would begin to reduce its monthly asset purchases to $75 billion from $85 billion.
Members of the Federal Open Market Committee (FOMC) will meet up Jan 28-29 to consider the next move for the central bank’s asset purchases as the US economy strengthens.
Gold – Jobs Report
The Labour Department is expected to release the non-farm payrolls for December during the day. Analysts are forecasting 196,000 new jobs were created, lower than 203,000 added in the previous month.
A report from ADP Research Institute, the US private sector hired 238,000 new employees in December, compared to 200,000 forecasted by analysts and the biggest increase since November 2012.
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