Gold steadied in Asia after surging past $1,700 an ounce, as traders weighed whether central banks may moderate aggressive monetary-tightening stances after the release of weak US data.
Bullion has gained almost 4% in the week's first two trading sessions, buoyed by a poorer than expected US manufacturing gauge and a decline in US job openings. The metal had fallen below $1,700 last month amid a strong greenback and surging Treasury yields.
Gold's appeal to rise again?
Disappointing US economic prints indicated that the Federal Reserve may soon slow its rate-hiking path, which would increase the appeal of gold. The non-yielding metal typically has a negative correlation with the dollar and rates.
This week, investors will turn their eyes toward more jobs data, which may offer clues to the next moves by the US central bank. A tighter central bank policy could bolster bond yields and push gold lower.
Spot gold was little changed at $1,724.52 an ounce as of 7:42 a.m. in Singapore. The Bloomberg Dollar Spot Index was also steady following Tuesday's 1% slide. Silver and palladium fell, while platinum was flat.