05 March 2015
Gold Advances Before U.S. Payrolls Report on Interest Rate Bets
(Bloomberg) - Gold snapped a three-day retreat as investors assessed the outlook for interest rates before the U.S. reports employment data and European policy makers unveil details of the region’s stimulatory bond buying program.
Bullion for immediate delivery advanced as much as 0.4 percent to $1,204.97 an ounce and was at $1,204.02 by 10:39 a.m. in Singapore, according to Bloomberg generic pricing. The precious metal is down 0.8 percent this week and fell to $1,195.50 on March 3, the lowest since Feb. 24.
Investors are assessing data for clues on when the Federal Reserve may raise benchmark rates from near zero. U.S. service industries unexpectedly expanded at a faster pace, while companies added fewer workers to payrolls in February, separate reports showed on Wednesday before Friday’s official jobs data. U.S. stocks retreated a second day and the European Central Bank may give more details on its easing plans on Thursday.
“The market is trying to second guess when rates are going to go up,” said David Lennox, a resource analyst at Fat Prophets in Sydney. While “strong PMI numbers should have given it a downside, the weak U.S. equity market should give it an upside,” he said by phone.
The Standard & Poor’s 500 Index fell 0.4 percent on Wednesday, extending Tuesday’s drop. The Institute for Supply Management’s non-manufacturing index rose to 56.9 in February from the prior month’s 56.7. Payrolls rose by 212,000 workers from 250,000 in January, ADP Research Institute said. Labor Department figures due Friday are projected to show the world’s largest economy added 235,000 jobs last month from 257,000.
Gold for April delivery traded at $1,203.30 an ounce on the Comex from $1,200.90 on Wednesday.
Silver for immediate delivery added 0.1 percent to $16.265 an ounce. Spot palladium rose 0.4 percent to $830.55 an ounce and platinum climbed 0.2 percent to $1,184.75 an ounce.