Gold Steady Around $1205 After Downbeat Data

Gold rallied 2 percent on Wednesday as the dollar retreated after a downbeat U.S. jobs report raised expectations that the Federal Reserve could be more cautious in tightening monetary policy.

The dollar fell 0.2 percent against a basket of currencies, after weaker-than-expected ADP private jobs data raised concerns that Friday’s impending jobs report could also point to worsening conditions in the labor market.

“There is so much discord in the U.S. data that is difficult to find what exactly the next report is going to be. It’s the uncertainty that pushes people towards safe-haven assets such as gold,” ING Bank senior strategist Hamza Khan said.