PRECIOUS-Gold hits four-week peak on safe-haven demand

* US non-farm payrolls report due on Friday * Gold ETFs drew first net inflow in four years in 2024, WGC says * Gold hit a near four-week high in the last session (Updates with mid-session trading) By Anushree Mukherjee Jan 9 (Reuters) - Gold prices rose to a near four-week high on Thursday, supported by safe-haven demand, while investors weighed how U.S. President-elect Donald Trump's policies would impact the economy and inflation. Spot gold XAU= inched up 0.4% to $2,672.77 per ounce, as of 1155 GMT. U.S. gold futures GCcv1 rose 0.8% to $2,690.30. "Safe-haven demand is modestly supporting gold, offsetting downside pressure coming from a stronger dollar and higher rates," UBS analyst Giovanni Staunovo said. The dollar index .DXY hovered near a one-week high, making gold less appealing for holders of other currencies, while the benchmark 10-year Treasury yield US10YT=RR stayed near eight-month peaks. US/ USD/ "Market uncertainty is likely to persist with the upcoming inauguration of Donald Trump as the next U.S. president," Staunovo said. Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, CNN reported on Wednesday, citing sources familiar with the matter. Trump will take office on Jan. 20 and his proposed tariffs could potentially ignite trade wars and inflation. In such a scenario, gold, considered a hedge against inflation, is likely to perform well. Investors' focus now shifts to Friday's U.S. nonfarm payrolls for further clarity on the Federal Reserve's interest rate path. Non-farm payrolls likely rose by 160,000 jobs in December after surging by 227,000 in November, a Reuters survey showed. Gold hit a near four-week high on Wednesday after a weaker-than-expected U.S. private employment report hinted that the Fed may be less cautious about easing rates this year. However, minutes of the Fed's December policy meeting showed officials' concern that Trump's proposed tariffs and immigration policies may prolong the fight against rising prices. High rates reduce the non-yielding asset's appeal. The World Gold Council on Wednesday said physically-backed gold exchange-traded funds registered their first inflow in four years. GOL/ETF Spot silver XAG= rose 0.8% to $30.34 per ounce, platinum XPT= was steady at $955.85 and palladium XPD= shed 0.1% to $927.75. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3Warztk ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Anushree Mukherjee in Bengaluru; additional reporting by Swati Verma; editing by Varun H K and Jason Neely) (([email protected];))