Markets await U.S. jobless claims, nonfarm payrolls data
Traders see 66 chance of 25bps rate cut by Fed in March
Fed minutes showed policymakers convinced inflation under control

Jan 4 Reuters Gold prices rebounded from a twoweek low on Thursday, as a pullback in the dollar lifted demand among investors who are looking ahead to a U.S. jobs report that could shed more light on the Federal Reserve39;s next move on interest rates.

Spot gold was up 0.3 at 2,046.70 per ounce as of 1006 GMT, after hitting its lowest since Dec. 21 on Wednesday. U.S. gold futures rose 0.6 to 2,054.50 per ounce.

A weaker dollar and slightly lower U.S. rates are lifting gold. It seems like the market participants took the Fed minutes as slightly more dovish, said Giovanni Staunovo, analyst at UBS.

We expect with the Fed implementing several rates cuts this year, this should bring back financial investors via ETF and bar demand and lift the price of gold to 2,250 per ounce by the end of the year, Staunovo added.

The dollar slipped 0.2 against its rivals after hitting a threeweek high in the last session, making gold more attractive for other currency holders.

Minutes of the Fed39;s Dec. 1213 meeting released on Wednesday showed a growing sense among policymakers that inflation was under control and were concerned about the risks of the central bank39;s overly restrictive monetary policy on the economy.

Traders are pricing in about a 66 chance of a 25basispoint rate cut from the Fed at…