Gold holds below 1-week high ahead of US jobs data, heads for weekly gain
Shafaq News/Gold held below a one-week high on Friday and was on track for a weekly gain,as market participants focussed on U.S. jobs data that could shape the size ofan expected rate cut this month.
Spot goldwas little changed at $2,516.00 per ounce as of 0221 GMT, after hitting aone-week high of $2,523.29 in the previous session. Bullion has climbed 0.5%for the week and 22% for the year so far.
U.S. goldfutures edged 0.1% higher to $2,545.70.
Bulliontypically performs better in a low-interest-rate environment and is viewed as asafe asset during periods of uncertainty.
Bets for a50-basis-point rate cut by the Federal Reserve on Sept. 18 have risen to 41%from 34% a week ago, according to CME Group's FedWatch tool. The U.S. nonfarmpayrolls (NFP) data due at 1230 GMT could provide further clarity.
"Goldprices are likely to edge higher if the upcoming NFP report shows signs oflabour market weakness, though the market could experience bouts ofvolatility," said Sugandha Sachdeva, founder of SS WealthStreet, a NewDelhi-based research firm.
"Pricesappear poised to test new highs, potentially reaching the $2,680–$2,700 rangethis year," she said, adding that geo-political tensions, weakness in thedollar, persistent central bank buying and uncertainty surrounding the U.S.elections had underpinned the outlook for gold.
Data onThursday showed that U.S. private employers hired the fewest number of workersin 3-1/2 years in August, while the number of Americans filing new applicationsfor jobless benefits declined last week.
Elsewhere,Perth Mint's gold product sales edged higher last month, while silver salesslid more than 30% on a monthly basis.
Among othermetals, spot silver fell 0.2% to $28.75 per ounce, while platinum gained 0.4%to $928.23. Palladium fell 0.1% to $940.11 and was headed for a weekly loss.
(Reuters)
