Feb 6 (Reuters) - Gold prices hit a more than four-week
low on Monday, as the U.S. dollar firmed after
stronger-than-expected jobs data fanned concerns that the
Federal Reserve might keep hiking interest rates.
FUNDAMENTALS
* Spot gold was little changed at $1,865.88 per
ounce, as of 0045 GMT, after hitting its lowest level since Jan.
6 earlier in the session. U.S. gold futures rose 0.2% to
$1,879.40.
* The dollar index was 0.2% higher, making gold less
attractive for buyers holding other currencies.
* Data on Friday showed U.S. job growth accelerated sharply
last month, with nonfarm payrolls surging by 517,000 jobs - well
above an estimate of 185,000. The unemployment rate hit more
than a 53-1/2-year low of 3.4%.
* Interest-rate futures traders moved after Friday's job
report to price in a further interest-rate increase in May,
which would bring the policy rate to the 5%-5.25% range, and are
now expecting eventual Fed rate cuts to start in November versus
in September previously.
* High interest rates usually dim bullion's appeal since
they translate to an increased opportunity cost of holding the
asset, which pays no interest.
* Data on Friday also showed U.S. services industry activity
rebounded strongly in January, with new orders recovering and
prices paid by businesses for materials continuing to rise at a
moderate pace.
* Physical gold demand in India ticked up last week, as
jewellers resumed purchases after staying away for a couple of
weeks hoping for an import duty cut in the government budget
amid the wedding season.
* Spot silver lost 0.5% to $22.24 per ounce, platinum eased 0.1% to $973.04 and palladium slipped 0.5%
to $1,616.54.
DATA/EVENTS (GMT)
0030 Australia Retail Trade Q4
0700 Germany Industrial Orders MM Dec
0700 Germany Manufacturing O/P SA Dec
0700 Germany Consumer Goods SA Dec
0930 UK All-Sector PMI Jan
(Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu
Sahu)
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