(RTTNews) – Gold rose to $4,100 an ounce on Thursday, capping an overnight surge after Fed Chair Kevin Warsh and European Central Bank President Christine Lagarde both said price risks had subsided in recent weeks.
Spot gold rose nearly 1 percent at $4,069.50 an ounce, while U.S. gold futures were little changed at $4,081.70.
Inflation and interest rate fears eased somewhat as oil prices continued to fall in international markets on easing supply concerns.
Qatar said “positive progress” has been made in indirect US-Iran talks and the next round of talks will likely be held after the funeral procession of Iran’s former supreme leader Ali Khamenei.
The market also got some relief from comments from central bankers, which said inflation risks have become more balanced.
At the annual ECB Forum in Sintra, Portugal, Fed Chairman Kevin Wersh reiterated his determination to get inflation back to the 2 percent target, saying risks to inflation have diminished in recent weeks. He avoided giving any kind of guidance.
ECB President Christine Lagarde also said risks to euro-zone inflation and growth have become less pronounced.
The US dollar remained steady ahead of the key monthly jobs report later in the day, with consensus estimates pointing to a slowdown in hiring in June. Meanwhile, the unemployment rate is expected to remain stable at 4.3 percent.
On Wednesday, a survey showed that US manufacturing activity slowed in June after a surge in the previous month. ADP said US businesses added 98,000 new jobs in June – the smallest increase in three months.
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