GOLD held below a one-week high on Friday and was on track for a weekly gain, as market participants focused on US jobs data that could shape the size of an expected rate cut this month.
Spot gold was little changed at US$2,516.00 per ounce as of 0221 GMT, after hitting a one-week high of US$2,523.29 in the previous session. Bullion has climbed 0.5 per cent for the week and 22 per cent for the year so far.
US gold futures edged 0.1 per cent higher to US$2,545.70.
Bullion typically performs better in a low-interest-rate environment and is viewed as a safe asset during periods of uncertainty.
Bets for a 50-basis-point rate cut by the Federal Reserve on Sept 18 have risen to 41 per cent from 34 per cent a week ago, according to CME Group’s FedWatch tool. The US nonfarm payrolls (NFP) data due at 1230 GMT could provide further clarity.
“Gold prices are likely to edge higher if the upcoming NFP report shows signs of labour market weakness, though the market could experience bouts of volatility,” said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.
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“Prices appear poised to test new highs, potentially reaching the US$2,680 to US$2,700 range this year,” she said, adding that geo-political tensions, weakness in the dollar, persistent central bank buying and uncertainty surrounding the US elections had underpinned the outlook for gold.
Data on Thursday showed that US private employers hired the fewest number of workers in 3-1/2 years in August, while the number of Americans filing new applications for jobless benefits declined last week.
Elsewhere, Perth Mint’s gold product sales edged higher last month, while silver sales slid more than 30 per cent on a monthly basis.
Among other metals, spot silver fell 0.2 per cent to US$28.75 per ounce, while platinum gained 0.4 per cent to US$928.23. Palladium fell 0.1 per cent to US$940.11 and was headed for a weekly loss. REUTERS
