Gold edged higher for a second session on Thursday as worries over Europe and Egypt prompted safe-haven buying, but the mood remained cautious ahead of US jobs data that could determine the outlook for the Federal Reserve’s stimulus measures.
Bullion has gained nearly 2 per cent so far this week after posting its biggest quarterly loss on record, helped as well by short covering and bargain hunting.
The last two days it has been boosted by political turmoil in Portugal, where talks over the government’s future threatened to reignite the euro-zone crisis, and by the ousting of Egypt’s President Mohamed Mursi by the army.
“It is typical safe-haven buying,” said a Hong Kong-based trader. “But we don’t know if the upside will continue. The nonfarm report tomorrow is important for gold.”
US nonfarm payrolls data due on Friday could determine when the Federal Reserve would begin tapering its US$85 billion monthly bond buying stimulus.
Investors were also on the sidelines due to the US Independence Day holiday on Thursday, the trader said.
Spot gold rose 0.3 per cent to US$1,254.59 an ounce by 0352 GMT, after gaining almost 1 per cent on Wednesday. Comex gold rose US$3 to US$1,254.90.
