Gold posted modest gains to re -trade above the $ 1,800 price level in the Asian session, taking advantage of declining U.S. bond yields and the U.S. dollar following disappointing U.S. jobs data.
The U.S. private sector ADP jobs report unexpectedly showed a contraction in January, where as many as 301,000 had declined.
This indirectly raises concerns that the NFP data to be released on Friday also shows a gloomy reading.
Although the Federal Reserve (Fed) has signaled to raise interest rates in March, a sluggish labor market could affect the Fed’s consideration for the next rate hike in the future.
In the Asian session, spot gold traded little changed at around $ 1,807 per ounce, while gold futures rose slightly to $ 1,808 per ounce.
Investors are now awaiting the outcome of the Bank of England (BOE) policy meeting; and Europe (ECB) today which will determine the next direction in setting their monetary policy.
The yellow gold metal tends to decline if the central bank’s decision towards tightening and interest rates are raised.
