(Reuters) – gold price held firm on Wednesday morning due to inflows in gold-backed funds this month and uncertainty of U.S. jobs data due to be released on Friday. Lack of Asian demand on physical gold this time of the year, the Chinese New Year break, kept the yellow metal price in its tightest range for six weeks.
Gold price in the spot market was up by 0.4% to be traded at $1,259.30 per ounce at 12:32 GMT. U.S. COMEX division gold futures for February delivery were up $7.10 to be traded at $1,258.30 per ounce. Gold price remained within $7 range, the tightest since Christmas.
London AM gold fix was at $1,257 on Wednesday, up by $6.75 from Tuesday’s PM fix at $1,250.25.
Doubts in stock markets performance after the heavy sell-off that followed U.S. monetary policy tapering piqued interest in gold investment and renewed safe-haven demand. SPDR Gold Trust, the largest gold-backed exchange traded fund, reported 3.9 tonnes inflow on Tuesday.
Most investors prefer to stay at the sidelines waiting for the U.S. NFP (Nonfarm payrolls) January report release on Friday to gauge the U.S. economic performance. However, the weaker than expected ADP (Automatic Data Processing) jobs should be beneficial to gold price, according to analysts.
The world largest gold buyer, China, still closed for Lunar New Year holiday, which weakened physical demand on gold. Other Asian markets subdued on higher gold prices and weakness of local currencies.