(Adds comment and updates prices)
* Gold retreats from early peak of $1,765.54/oz
* U.S. nonfarm payrolls data due on Friday
* Investors in a wait-and-see mode ahead of NFP data -
Oct 4 (Reuters) - Gold softened after hitting a more than
one-week high earlier on Monday as U.S. Treasury yields firmed,
but inflation concerns helped keep prices above key support at
$1,750 as investors' attention turned to upcoming jobs data.
Spot gold was down 0.4% at $1,752.60 per ounce by
1216 GMT, reversing an initial climb to its highest since Sept.
23 at $1,765.54 during the Asian session. U.S. gold futures
fell 0.3% to $1,753.30.
"Gold will track moves in U.S. yields, while risk appetite
will continue to provide short-term direction in terms of
safe-haven demand ahead of the U.S. nonfarm payrolls report on
Friday," said Ricardo Evangelista, senior analyst at
The report, expected to show a continued improvement in the
labour market, could influence the Federal Reserve's timeline
for tapering economic support.
Hence, "investors are in a wait-and-see mode", and any
indication about the timing of the next decision from the Fed
could offer new direction to gold, Kinesis Money analyst Carlo
Alberto De Casa said.
Reduced central bank stimulus and interest rate increases
lift bond yields, raising the opportunity cost of holding
But while gold is slipping off the highs reached on Friday,
it could benefit as investors remain worried about the fallout
from China's Evergrande crisis and rising energy prices,
considering the risks to global economic growth, Evangelista
Bullion is considered a hedge against rising inflation and
Recent data showed euro zone inflation hit a 13-year high
last month, while U.S. consumer spending surged in
Gold seemed to largely ignore a retreat in the dollar, an
unusual occurrence as a lower dollar makes gold cheaper for
those holding other currencies.
Silver fell 0.7% to $22.36 per ounce, platinum
was down 1.9% at $953.09, and palladium dropped 0.7% to
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Robert
Birsel and Jan Harvey)