Sept. 3 (Reuters) - Gold held steady in early Asian trade on Thursday as investors awaited U.S. nonfarm payrolls data that could help shape expectations for the Federal Reserve's next policy move.
-
Spot gold XAU= held its ground at $4,386.28 per ounce by 0046 GMT. Prices bounced from a near one-month low on Wednesday after the U.S. dollar and Treasury yields retreated from recent highs.
-
U.S. gold futures GCcv1 for December delivery rose 0.4% to $4,432.10.
-
Key U.S. nonfarm payrolls data is due on Friday. Meanwhile, the ADP National Employment Report showed U.S. private payrolls increased less than expected in August.
-
U.S. economic activity increased modestly, employment rose slightly and prices increased moderately in recent weeks, according to a mixed report published on Wednesday by the Fed that may do little to convince central bank policymakers one way or another as they weigh whether to raise interest rates at their September 15-16 meeting.
-
Markets are pricing in a 62% probability of a U.S. rate hike this month, the CME FedWatch Tool showed.
-
Gold is traditionally seen as an inflation hedge, but higher rates increase the opportunity cost of holding the non-yielding asset.
GLD•
