Gold rises

Gold prices rose on Thursday as softer-than-expected US jobs data and lower oil prices eased inflation concerns, while investors awaited the nonfarm payrolls report for cues on the Federal Reserve’s policy path.

Spot gold had risen 0.9 percent to $4,067.67 per ounce by 0753 GMT, after touching its highest level since June 23 in the last session. US gold futures for August delivery inched 0.1 percent lower to $4,080.

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Bullion rebounded from a more-than-seven-month low to close higher on Wednesday after data showed US private employment rose by 98,000 jobs in June, below economists’ expectations of 118,000.

“The market’s cautious about being short down here because you’re seeing a couple of probes to the downside, which are quite rapidly being rejected,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.

“ADP data came in a little bit lower than forecast, so that probably explains gold’s rally as some people think that the data will be reflected in non-farm payrolls,” said Frappell.

Meanwhile, Fed Chair Kevin Warsh said on Wednesday that inflation expectations and inflation risks have come down in recent weeks, even as he repeated the central bank is committed to bringing inflation down to its 2 percent goal.

Traders are pricing in roughly a 66 percent chance of a rate hike in September, according to the CME FedWatch tool.

The June nonfarm payrolls data, due at 1230 GMT, could shape expectations for the Fed’s rate path.

Oil prices fell after Iran and the United States concluded a round of indirect talks on Wednesday, focused on the Strait of Hormuz, but made little headway towards a lasting peace.

Elevated oil prices can stoke fears over inflation, and while gold is traditionally seen as a hedge against inflation, it loses its appeal in a high interest-rate environment.