Shafaq News / Gold prices looked set on Friday to wrap up their second straight week of gains, helped by diminished chances of U.S. interest rate hikes this year after a data-filled week that concludes with the pivotal jobs report later in the day.
Spot gold steadied at $1,938.92 per ounce by 0336 GMT, but was poised for a more than 1% weekly gain after prices touched one-month highs on Wednesday. U.S. gold futures were trading around $1,965.60.
“The data from the U.S. has been on the soft side of things this week, and investors will be waiting to see if the NFP data confirms the trend of cooling economic activity,” said KCM Trade Chief Market Analyst Tim Waterer.
The U.S. non-farm payrolls (NFP) report is due at 1230 GMT, which comes after data so far this week showed job openings hit a 2-1/2-year low in July and the economy grew at a slightly less brisk pace than anticipated in the second quarter.
“If we witness an NFP print on the low side, Treasury yields will continue with their recent descent. The move lower in U.S. Treasury yields has made gold more attractive, which is why we have seen gold on a recovery path higher this week,” Waterer said.
U.S. bond yields were set to end the week about 3% lower, while the dollar was on course to snap a six-week winning streak as slowing monthly inflation cemented expectations that the Federal Reserve would keep interest rates unchanged this month.[USD/] [US/]
Gold as a non-interest-paying asset tends to lose its appeal among investors when interest rates rise.
Elsewhere, spot silver was flat at $24.4284 per ounce, while platinum fell 0.2% to $965.98. However, both metals were set for weekly gains.
Palladium rose 0.7% to $1,222.90.