Gold Steady Ahead Of Jobs Data

(RTTNews) - The price of gold was holding onto its previous session gains Friday morning even as the US dollar was trading steady versus a basket of currencies ahead of the much awaited jobs data.

Barclays Bank forecasts the 2014 average gold price at $1,205 per ounce and said slower-than-expected U.S. Federal Reserve tapering, weaker equity markets and a softer dollar could help to revive gold in the short term.

Gold for February delivery, the most actively traded contract, edged up $3.50 to $1,232.90 an ounce. Yesterday, gold snapped a three-day loss to settle higher, as investors awaited some crucial monthly non-farm payrolls data due Friday, with the dollar weakening against some select currencies. The gains made by the precious metal were capped after some upbeat data showed first time unemployment benefit claims in the U.S. dropped more than expected. The encouraging jobless claims benefits data renewed speculations the Federal Reserve would continue tapering its quantitative easing program through the year.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 793.12 tons.

This morning, the U.S. dollar was hovering near its one-month high versus the euro and the Swiss franc, while paring recent losses against sterling and ticking higher against the yen.

In economic news from the euro zone, Switzerland's consumer prices increased for the second consecutive month in December, the Federal Statistical Office said. Consumer prices gained 0.1 percent year-on-year in December as seen in November. The consumer price index showed a positive change in November for the first time in more than two years.

Elsewhere, the U.K.'s industrial production remained unchanged in November compared with the previous month, the latest figures from the Office for National Statistics showed. The weaker-than-expected outcome followed two successive months of improvement. Output increased by a revised 0.3 percent in October and 0.9 percent in September. Economists had forecast a 0.4 percent increase in November.

The prices of silver and platinum were ticking higher in morning deals.

From the U.S, the Labor Department will release its non-farm payrolls report for December at 8:30 am ET. Economists estimate non-farm payrolls to have expanded by 200,000 in the month, while the unemployment rate may have remained unchanged at 7 percent.

Later during the session, the Commerce Department will release its wholesale inventories report for November at 10 am ET. The consensus estimates call for a 0.5 percent month-over-month increase in wholesale inventories for the month.