Gold edges higher in choppy trade as investors await U.S. economic data

<html xmlns=""><head><title>PRECIOUS-Gold edges higher in choppy trade as investors await U.S. economic data</title></head><body>

Focus on U.S. inflation data next week

Gold supported by central banks' buying - analyst

Updates prices

By Brijesh Patel

Feb 8 (Reuters) - Gold prices edged back up in a choppy session on Wednesday, as investors looked forward to more economic data to gauge the U.S. Federal Reserve's rate-hike strategy.

Spot gold XAU= was up 0.1% at $1,875.10 per ounce by 3:19 p.m. ET (2019 GMT). U.S. gold futures GCv1 rose 0.3% to settle at $1,890.70.

"The main focal point here has been the shift in sentiment after the jobs report. There were high expectations that (Fed Chair) Jerome Powell would take advantage of the opportunity to jawbone the market down a bit, but he did not," said David Meger, director of metals trading at High Ridge Futures.

"We continue to see gold prices to be range bound here. There is some fairly strong support in the $1,850 to $1,870 range. We think dips are going to remain a buying opportunity in the short term."

Powell said on Tuesday interest rates might need to move higher than expected if the U.S. economy remained strong, but reiterated he felt a process of "disinflation" is underway.

New York Fed President John Williams said on Wednesday his expectations of future central bank rate cuts were driven mostly by a need to respond to the likelihood of lower levels of inflation in the future.

Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion.

Following a robust U.S. jobs report, market participants now await January inflation numbers next week that could offer more cues on the Fed's rate-hike path.

"One factor that could well be keeping the gold price so supported is the strength of buying from central banks, including those in China, India and Turkey," Kinesis Money analyst Rupert Rowling said.

The dollar USD= edged up, making gold less attractive for other currency holders and limiting gains. USD/

Spot silver XAG= rose 0.3% to $22.25, platinum XPT= slipped 0.1% to $972.00, and palladium XPD= dipped 0.1% to $1,643.37.

Reporting by Brijesh Patel in Bengaluru; additional reporting by Bharat Govind Gautam; Editing by Shounak Dasgupta and Shailesh Kuber


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.