Gold holds above $1,800 on weaker yields as job data disappoints

Feb 3: Gold prices were little changed above the key $1,800 per ounce level on Thursday, as U.S. Treasury yields retreated after a dip in U.S. jobs data.

FUNDAMENTALS

* Spot gold was flat at $1,807.39 per ounce by 0049 GMT. U.S. gold futures fell 0.1% to $1,808.00.

* The dollar was slightly up, yet held around the lows after the private payrolls data, and U.S. Treasury yields inched slightly lower after the employment data.

* U.S. private payrolls fell for the first time in a year in January as soaring COVID-19 infections disrupted business operations.

* Investor focus now shifts to European Central Bank and Bank of England meetings on Thursday for cues on the pace of monetary policy tightening amidst soaring inflation.

* Although gold is considered a hedge against geopolitical risks and inflation, interest rate hikes would raise the opportunity cost of holding non-yielding bullion.

* Bank of Canada Governor Tiff Macklem said there was uncertainty about how quickly inflation would come back down into the central bank's comfort zone, due to the unique nature of the pandemic.

* The U.S. will send extra troops to shield Eastern Europe from a potential spillover from the massing of Russian troops near Ukraine, U.S. officials said on Wednesday.

* Spot silver fell 0.1% to $22.59 an ounce and platinum was little changed at $1,032.98, while palladium fell 0.5% to $2,357.17.

DATA/EVENTS (GMT)

0850 France Markit Serv PMI Jan

0850 France Markit Comp PMI Jan

0855 Germany Markit Serv PMI Jan

0855 Germany Markit Comp Final PMI Jan

0900 EU Markit Serv Final PMI Jan

0900 EU Markit Comp Final PMI Jan

0930 UK Reserve Assets Total Jan

1200 UK BOE Bank Rate Feb

1200 UK GB BOE QE Corp Feb

1245 EU ECB Refinancing Rate Feb

1245 EU ECB Deposit Rate Feb

1330 US Initial Jobless Claims Jan

1445 US Markit Comp Final PMI Jan

1445 US Markit Svcs PMI Final Jan

1500 US Factory Orders MM Dec

1500 US ISM N-Mfg PMI Jan