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Gold prices rose on Monday, as growing
worries over broadening price pressures lifted the metal’s
appeal as an inflation hedge and helped cushion pressure from
higher U.S. Treasury yields after a surprisingly upbeat jobs
report.
FUNDAMENTALS
* Spot gold rose 0.2% to $1,810.38 per ounce by 0129
GMT, hovering close to its highest nearly a week reached last
Friday, while U.S. gold futures edged up 0.2% to
$1,812.10
* The dollar index was flat, while benchmark 10-year
U.S. Treasuries hit their highest levels since December 2019 on
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Friday.
* The Labor Department’s employment report showed nonfarm
payrolls jumped by 467,000 jobs last month, which could sustain
the Federal Reserve’s plan to raise interest rates.
* Wild swings in stocks and a sharp run-up in government
bond yields have put the spotlight on this week’s U.S. inflation
data, as investors brace for more volatility across assets.
* Due out on Thursday, the U.S. consumer price index for
January was expected to have risen 0.5%, culminating in an
annual rise of 7.3%, which would be the largest such increase
since 1982, according to a Reuters poll.
* Gold is considered a hedge against inflation and
geopolitical risks, yet rate hikes would raise the opportunity
cost of holding non-yielding bullion.
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* Two U.S. officials said on Saturday Russia had in place
about 70% of the combat power it could need to invade Ukraine,
while Russia said it was not planning an invasion but could take
unspecified military action if its security demands were not
met.
* Silver rose 0.9% to $22.67 per ounce, platinum
edged 0.1% up to $1,025.47 and palladium was up
0.7% to $2,299.68.
DATA/EVENTS (GMT)
0145 China Caixin Services PMI Jan
0700 UK Halifax House Prices MM Jan
0700 Germany Industrial Output MM Dec
0745 France Reserve Assets Total Jan
1545 – ECB President Lagarde speaks in a regular hearing to
the European Parliament’s Committee on Economic and Monetary
Affairs
(Reporting by Seher Dareen in Bengaluru; Editing by Subhranshu
Sahu)
