Gold Holds Gain As Inflation Concerns Ease

(RTTNews) - Gold rose toward $4,100 an ounce on Thursday, extending an overnight rebound after Fed Chair Kevin Warsh and European Central Bank President Christine Lagarde both said price risks have come down in recent weeks.

Spot gold rose nearly 1 percent to $4,069.50 an ounce while U.S. gold futures were little changed at $4,081.70.

Inflation and interest-rate fears ebbed somewhat as oil prices continued to fall in international markets on eased supply concerns.

Qatar said that indirect U.S.-Iran talks have made "positive progress" and that the next round of talks will be held at the earlier possible time following the funeral procession of Iran's former Supreme Leader Ali Khamenei.

Markets also drew some comfort from central bankers' commentary suggesting that inflation risks have become more balanced.

At the annual ECB Forum in Sintra, Portugal, Fed Chair Kevin Warsh said inflation risks have eased in recent weeks while repeating his determination to bring inflation back to the 2 percent target. He avoided giving any rate path guidance.

ECB President Christine Lagarde also said risks to euro-area inflation and growth have become less pronounced.

The U.S. dollar held steady ahead of the key monthly jobs report due later in the day, with consensus estimates pointing to a slowdown in hiring in June. The jobless rate, meanwhile, is expected to hold steady at 4.3 percent.

On Wednesday, a survey showed U.S. manufacturing activity slowed in June after surging in the prior month. ADP said U.S. businesses added 98,000 new jobs in June - the smallest increase in three months.