- US nonfarm payrolls data due at 1230 GMT
- Inflation risks and expectations have eased in recently - Fed Chair Kevin Warsh
- Traders see about 62% chance of September rate hike - CME FedWatch
July 2 (Reuters) - Gold climbed on Thursday, bolstered by soft jobs data, weaker oil and comments from the Federal Reserve chair that suggested inflation risks have eased, ahead of U.S. nonfarm payrolls data.
Spot gold was up 0.9% at $4,064.41 per ounce, as of 1101 GMT, after touching its highest level since June 23 in the previous session. The metal snapped a two-day losing streak to close higher at $4,029.89 on Wednesday after U.S. private payrolls data for June.
U.S. gold futures for August delivery inched 0.1% lower to $4,076.60/oz.
"The precious metal is rebounding today after Fed Chair (Kevin) Warsh struck a less hawkish tone at the ECB forum," said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.
Warsh said on Wednesday that inflation expectations and risks had eased in recent weeks, while reiterating the Fed's commitment to returning inflation to its 2% target, warning against expectations of looser policy.
Traders see a nearly 62% chance of a rate hike by September, according to the CME FedWatch tool. FEDWATCH/
Higher interest rates raise the opportunity cost of holding non-yielding assets like gold.
Central banks were back in buying mode in May and, based on the latest reported data, official gold reserves increased by a net 41 tons during the month, the World Gold Council said.
Investors now await June nonfarm payroll data, due at 1230 GMT, for further cues on the Fed's rate path. Nonfarm payrolls likely increased by 110,000 jobs last month after rising 172,000 in May, a Reuters survey of economists showed.
Any notable weakness in the data could help gold inch towards $4,250, but it's not going to be enough to take it out of bear territory, said Tzabouras.
"Anything above 100,000 jobs would likely be sufficient to sustain Fed hike expectations and keep bullion vulnerable to deeper declines toward $3,500."
Meanwhile, oil fell for a third consecutive day after Qatar said Iran and the U.S. had made progress in indirect talks focusing on the Strait of Hormuz.
Lower oil prices temper inflation worries, boosting bets that the Fed could adopt a less restrictive policy stance.
Among other metals, spot silver rose 0.9% to $59.69 per ounce, platinum gained 1.8% to $1,605.51, and palladium added 2.3% to $1,238.32.
Reporting by Sumit Saha in Bengaluru; Editing by Sonia Cheema and Leroy Leo
Source: Reuters