Gold holds steady amid Middle East turmoil, eyeing US economic data
Oct 3 (Reuters) -Gold held steady on Thursday, as traders focused on developments in the Middle East conflict and anticipated key U.S. economic data that may provide clues about the rate cuts expected later in the year.
FUNDAMENTALS
* Spot gold XAU= was steady at $2,659.05 per ounce, as of 0034 GMT.
* U.S. gold futures GCcv1 rose 0.4% to $2,679.50.
* According to the ADP National Employment report on Wednesday, U.S. private payrolls increased more than expected in September, further evidence that labor market conditions were not deteriorating.
* The recent half-percentage-point interest rate cut by the U.S. central bank acknowledges that its policy was "out of sync" with the economy, but shouldn't be taken as a sign that the battle with inflation is finished, Richmond Federal Reserve President Thomas Barkin said on Wednesday.
* Expectations for another cut of 50 bps at the November meeting have been decreasing recently, with markets pricing in a 35% chance, down from nearly 53% on Friday, according to CME's FedWatch Tool.
* Lower interest rates reduce the opportunity cost of holding gold, which is also viewed as a safe asset during economic and political turmoil.
* Israel bombed central Beirut in the early hours of Thursday, killing at least six people, after its forces suffered their deadliest day on the Lebanese front in a year of clashes against Iran-backed armed group Hezbollah.
* Investors are attentively watching for the ISM services data and initial jobless claims, which are due later in the day, along with the U.S. nonfarm payroll data expected on Friday.
* Elsewhere, Perth Mint's gold product sales in September surged to a 10-month high, while silver sales also reached a seven-month high, the refiner said on Thursday.
* Spot silver XAG= fell 0.3% to $31.76 per ounce, platinum XPT= gained 0.3% to $1,005.65 and palladium XPD= edged 0.1% up to $1,016.25.
DATA/EVENTS (GMT)
0030 Japan JibunBK Comp Op Final SA Sept
0030 Japan JibunBK SVC PMI Final SA Sept
0750 France HCOB - Services PMI Sept
0750 France HCOB - Composite PMI Sept
0755 Germany HCOB Services PMI Sept
0755 Germany HCOB Composite Final PMI Sept
0800 EU HCOB Services Final PMI Sept
0800 EU HCOB - Composite Final PMI Sept
0830 UK S&P Global PMI: Composite - Output Sept
0830 UK Reserve Assets Total Sept
0900 Germany Overall Comprehensive Risk Q4
0900 France Overall Comprehensive Risk Q4
0900 UK Overall Comprehensive Risk Q4
1230 US Initial Jobless Clm 28 Sep, w/e
1345 US S&P Global Comp Final PMI Sept
1345 US S&P Global Svcs PMI Final Sept
1400 US Factory Orders MM Aug
1400 US ISM N-Mfg PMI Sept
Reporting by Daksh Grover in Bengaluru; Editing by Alan Barona
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