Gold Prices Hold Steady as U.S. Dollar Remains Supported
Investing.com - Gold prices held steady on Tuesday, as demand for the U.S. dollar remained mildly supported following last week's upbeat employment data and as traders awaited the release of highly-anticipated U.S. inflation data due later in the day.
Comex gold futures were little changed at $1,320.0 a troy ounce by 03:10 a.m. ET (07:10 GMT).
The dollar initially strengthened after the Labor Department reported on Friday that the U.S. economy added 313,000 jobs last month, beating economists’ forecasts of 200,000. It was the largest monthly increase in one-and-a-half years.
However the report also showed that average hourly earnings rose by just 0.1% in February for an annual rate of 2.6%, down from 2.8% in January.
The slowdown in wage growth dampened eased concerns over inflationary pressures and dampened expectations for four rate hikes by the Federal Reserve this year.
Market participants were looking ahead to the U.S. consumer price inflation report due later in the day, to see if it confirms the expectations created by Friday's jobs data.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.09% at 89.98.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures fell 0.19% to $16.50 a troy ounce.
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