Gold prices extended their gains on Thursday after reaching their highest level in more than a week during the previous session, as investors assessed weaker-than-expected U.S. employment data while lower oil prices provided additional support for the precious metal.
Spot gold rose 0.8% to $4,063.56 per ounce by 01:03 GMT, after climbing to $4,114.99 per ounce on Wednesday, its highest level since June 23.
U.S. August gold futures slipped 0.2% to $4,075.60 per ounce.
A report released by ADP Research showed that the U.S. private sector added 98,000 jobs last month, following an unrevised increase of 122,000 jobs in May.
Oil prices declined after Iran and the United States concluded another round of indirect talks on Wednesday focused on the Strait of Hormuz, although the negotiations produced little progress toward a lasting peace agreement.
Higher oil prices and a stronger labor market typically fuel inflation concerns and increase expectations that interest rates will remain elevated for longer.
While gold is widely regarded as a hedge against inflation, higher interest rates tend to reduce its appeal because the metal does not generate interest income.
According to the CME FedWatch Tool, traders are currently pricing in an approximately 64% probability of an interest rate increase in September.
Investors are now awaiting the release of the U.S. June nonfarm payrolls report, due later on Thursday, for further clues about the future path of monetary policy by the Federal Reserve, which could influence near-term movements in gold prices.
Among other precious metals:
* Spot silver rose 1.0% to $59.76 per ounce.
* Platinum gained 0.4% to $1,583.05 per ounce.
* Palladium advanced 1.1% to $1,223.80 per ounce.
Reuters
