April 4 (Bloomberg) -- Gold was little changed in Asia as investors awaited a government report today that may show U.S. employers eliminated jobs for a third straight month.
Payrolls probably shrank by 50,000 last month, according to the median forecast of 79 economists surveyed by Bloomberg. The data may drive the direction of the dollar and demand for the metal. Gold, which reached a record $1,032.70 an ounce March 17, often moves in the opposite direction to the currency.
“The macro economic features have not changed in the landscape, primarily the negative real interest rate environment,” said Tom Winmill, managing director of Midas Management Corp. in New York. The metal may rise to $1,500 an ounce in the next 12-18 months, he said.
Bullion for immediate delivery added 0.1 percent to $903.47 an ounce at 10:45 a.m. in Singapore. Silver for immediate delivery fell 0.2 percent to $17.3225 an ounce.
“Short term treasuries are still yielding in the 1.5-1.7 percent range, inflation is still around 4 percent, when you have a negative real interest rate environment like that, it's good to own hard assets,” Winmill told Bloomberg in a television interview today.
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The U.S. Dollar Index, a weighted measure against six major Currencies, stood little changed at 72.181 at 10:56 a.m. in Singapore.
“Investors have to look at alternative investments and as the economic landscape changes, they evaluate from one sector to another,” Dan Hollis, chief executive officer of Dutch Gold said in a Bloomberg Television interview today. “Gold's a terrific performer for the past three years, and over the long term it will continue.”
Gold for April delivery fell 0.2 percent to $907.50 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange at 10:57 a.m. Singapore time.
Gold for December delivery on the Tokyo Commodity Exchange was little changed at 2,999 yen a gram ($910 an ounce) at the 11 a.m. local time break.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
Last Updated: April 3, 2008 23:24 EDT
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