Gold prices slip

LONDON - Gold edged lower yesterday as investors shifted their focus to US jobs data due at the end of the week for guidance on monetary policy for the rest of the year.

Spot gold was down 0,3 percent at $1,340.20 per ounce, as of 1302 GMT. It touched $1,332.30 an ounce in the previous session, its lowest since January 23.

US gold futures for February delivery were nearly flat at $1,342.70 per ounce.

The US Fed held interest rates unchanged yesterday but raised its inflation outlook and flagged “further gradual” rate increases.

“There is a possibility that the dollar could rise again and if we have stronger-than-expected jobs data (on Friday) then that would be bad news for gold,” said FOREX.com analyst Fawad Razaqzada.

Gold gained just 3,2 percent in January as the dollar fell to three-year lows against a basket of major currencies. It hit a 17-month peak of $1,366.07 on January 25.

“We remain somewhat friendly to gold in the short-term. The dollar seems to be adrift, as investors are unsure what direction to push it,” said INTL FCStone analyst Edward Meir.

The dollar index inched lower after the Fed signalled its confidence about inflation and growth in the US economy, reinforcing views it will raise rates several times this year.