Forexpros – Gold prices rose in Asian trading Thursday, as investors digested solid private-sector jobs data in the U.S. and an increasingly likelihood of a Greek debt restructuring with private creditors going through by a March 8 deadline.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,685.85 a troy ounce, up 0.12%.
Gold futures were likely to test support at USD1,663.75 a troy ounce, Tuesday’s low, and resistance at USD1,709.75, Tuesday’s high.
Greece and private creditors have agreed on a restructuring deal, under which private investors forgive Greece 53.5% of their principal and swap their remaining holdings for new Greek bonds and notes from the European Financial Stability Facility.
The deadline for the deal is March 8 in Europe.
Concerns that private creditors were balking at the last moment sent the euro falling in recent sessions, although as the deadline drew closer, more lenders came in line and fears abated.
Meanwhile in the U.S., payroll processing firm ADP on Wednesday reported that non-farm private-sector employment rose by a seasonally adjusted 216,000 in February, beating expectations for an increase of 205,000.
The previous month’s figure was revised up to a gain of 173,000 from a previously reported increase of 170,000.
The U.S. jobs news sparked demand for gold on sentiment that eventually inflationary pressures will return to the world’s largest economy.
Either the economy will improve and consumers will demand more or the economy will sputter out again, prompting the Federal Reserve to intervene with loose monetary policies like quantitative easing, asset purchases from banks.
Either way, inflation rises and so does demand for inflation’s traditional hedge, gold.
Meanwhile, hopes that Greece will restructure its debts sent the euro rising earlier, and a rising euro often takes gold up with it.
Elsewhere on the Comex, silver for May delivery was down 0.39% and trading at USD32.453 a troy ounce, while copper for May delivery was up 0.07% and trading at USD3.775 a pound.
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