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SINGAPORE, March 9 (Reuters) – Oil prices were in a holding pattern on Thursday, as a larger-than-expected draw in US crude stocks and hopes for China demand contended with worries that more aggressive US interest rate rises would slow economic growth and dent oil consumption.

Brent crude futures edged up by 1 cent to USD 82.67 per barrel by 0645 GMT, while US West Texas Intermediate (WTI) crude futures were flat at USD 76.66 a barrel.

Both benchmarks declined between 4% and 5% over the previous two days.

They posted their largest daily fall since early January on Tuesday after comments by US Federal Reserve Chair Jerome Powell that the central bank would likely need to raise interest rates more than expected in response to recent strong data.

“Oil prices are still under the influence of Powell’s hawkish tone recently, and the increasing possibility of another 50 basis points hike rather than a 25 basis points one,” said Suvro Sarkar, lead energy analyst at DBS Bank.

“Oil prices will be caught in the tug of war between sentiment surrounding rate hikes and inflation targeting on the one hand, and China reopening on the other for much of the year, at least the first half.”

While China’s crude oil imports fell 1.3% in the first two months of 2023 from a year earlier, analysts pointed to accelerating imports in February as a sign that fuel demand was rebounding after Beijing scrapped COVID-19 controls.

At a conference in Houston on Tuesday, the secretary general of the Organization of the Petroleum Exporting Countries said China’s oil demand would grow 500,000 to 600,000 barrels per day in 2023, and the organization was “quite optimistic, cautiously.”

Meanwhile, data from the US Energy Information Administration (EIA) showed on Wednesday that US crude stocks fell 1.7 million barrels last week, defying analysts’ expectations for a build of 395,000 barrels and ending a 10-week streak of inventory builds.

Adding to demand concerns, however, US gasoline stocks fell by 1.1 million barrels, according to official data, less than the 1.9 million barrel drawdown analysts had forecast, and distillate inventory grew by 138,000 barrels, compared with expectations for a 1-million-barrel drawdown.

Despite the EIA inventory report showing the first crude draw of the year, crude demand uncertainty over the short term is “keeping oil prices heavy,” said OANDA senior analyst Edward Moya in a note.

“Until we see clear signs of China’s recovery gaining steam, oil prices look like they want to stay heavy.”

(Reporting by Stephanie Kelly and Emily Chow in Singapore; Editing by Bradley Perrett and Sonali Paul)

March 9 (Reuters) – Gold prices traded in a tight range on Thursday as some investors stayed on the sidelines ahead of US jobs data that could influence the Federal Reserve’s monetary policy path.

Spot gold was flat at USD 1,813.20 per ounce, as of 0716 GMT, trading in a USD 5 range, after hitting its lowest since February 28 on Wednesday. US gold futures eased 0.1% to USD 1,816.70.

Gold is considered a hedge against inflation, but interest rate hikes to control rising prices make non-yielding bullion less attractive.

“The (gold) market has been muted … the market is still trying to digest where the Fed will go after Powell mentioned the final interest rates might be higher than initially expected,” said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.

Fed Chair Powell on Wednesday reaffirmed his message of higher and potentially faster interest rate hikes, but emphasized that debate was still underway with a decision hinging on data to be issued before the US central bank’s policy meeting in two weeks.

Markets are now pricing in a 50-basis point hike at the Fed’s March 21-22 policy meeting.

“Gold traders are waiting for the non-farm payroll report on Friday before we see any major repositioning,” Edward Moya, senior market analyst at OANDA, said in a note.

The US jobs report is expected to show non-farm payrolls increased by 205,000 in February, according to economists polled by Reuters.

Private employment increased by 242,000 jobs last month, according to the ADP National Employment report, while separate data on Wednesday showed US job openings fell less than expected in January.

The dollar index was near a three-month high, making bullion less affordable for overseas buyers.

Gold may bounce again to USD 1,825 per ounce before turning around and falling towards its February 28 low of USD 1,804.02, Reuters technical analyst Wang Tao said.

Spot silver was flat at USD 20.00 per ounce, platinum was unchanged at USD 937.43, while palladium lost 0.9% to USD 1,361.13.

(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema)

March 8 (Reuters) – Gold prices slipped to a one-week low on Wednesday after US Federal Reserve Chair Jerome Powell said interest rates might need to go higher than expected to curb inflationary pressures.

Spot gold eased 0.1% to USD 1,812.44 per ounce, as of 0634 GMT. US gold futures edged down 0.2% to USD 1,816.50.

The Fed will likely need to raise rates more than expected in response to recent strong data and is prepared to move in larger steps if the “totality” of incoming information suggests tougher measures are needed to control inflation, Powell said on the first day of his semi-annual, two-day testimony before Congress.

In the aftermath of Powell’s remarks on Tuesday, gold prices had dropped as much as 1.9%, or by more than USD 30, to USD 1,812.55.

“Nobody wants to buy gold today following the hawkish remarks from Powell… there’s also very little gold-selling, with prices pushing slightly lower but without conviction – gold almost looks startled today,” said Matt Simpson, a senior market analyst at City Index.

“A break below USD 1,800 is on the cards for gold,” he added.

Higher interest rates usually dull gold’s appeal because they increase the opportunity cost of holding the asset which bears no interest.

The Fed slowed to a 25 basis-point rate increase at its last meeting, after bigger hikes last year to fight decades-high inflation, but a slew of data in recent weeks spurred concerns that the US central bank would persist with monetary policy tightening.

Markets are now pricing in a 50 basis-point hike at the Fed’s March 21-22 policy meeting.

The dollar index hit a three-month high, making bullion less affordable for buyers holding other currencies.

Meanwhile, Australia’s Perth Mint reported gold product sales in February fell to their lowest in more than two years, while silver sales rose about 20% on the month.

Spot silver was down 0.1% at USD 20.03 per ounce, platinum added 0.8% at USD 936.72 and palladium rose 0.3% to USD 1,391.40.

(Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)