Gold Holds Near $1,800 After Data Show U.S. Shedding Jobs

(Bloomberg) -- Gold advanced and the dollar pushed lower after a report showed companies in the U.S. unexpectedly shed jobs last month.

Businesses' payrolls fell last month by the most since April 2020, according to ADP Research Institute data released Wednesday. Meanwhile, Euro-area inflation unexpectedly accelerated to a record, overshooting expectations by the most in at least two decades.

The euro zone inflation figures “could give gold something of a boost if the euro were to appreciate further in response and the U.S. dollar were to continue depreciating,” said Daniel Briesemann, an analyst at Commerzbank AG. 

Gold also got help as concerns eased over the outlook for an aggressive stance on interest rates by the Federal Reserve. None of the six Fed officials speaking so far this week have backed the idea of a half-point rate increase in March, and the most aggressive, James Bullard, president of the St. Louis Fed, said five hikes is “not too bad a bet.” 

Read more: Fed Won't Be Rushed in Its Hiking Path by Wall Street Frenzy

Spot gold rose 0.4% to $1,808.03 an ounce as of 3:13 p.m. in New York. Bullion for April delivery gained 0.5% to settle at $1,810.30 on the Comex. Silver, platinum and palladium also gained. The Bloomberg Dollar Spot index fell 0.2%, on course for its third consecutive decline.

Markets in China and some other Asian countries will be closed for much of the week for the Lunar New Year holidays.

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