GOLD prices held steady on Friday (May 17) and were on track for a second consecutive weekly gain, as recent US economic data prompted traders to raise bets of an interest rate cut from the Federal Reserve later this year.

Spot gold held its ground at US$2,377.09 per ounce, as at 0114 GMT. Bullion prices rose 0.7 per cent so far for the week.

US gold futures edged 0.2 per cent lower at US$2,381.20.

The US dollar index was down 0.7 per cent for the week so far, against its rivals, making gold less expensive for other currency holders.

The number of Americans filing new claims for jobless benefits fell last week, unwinding nearly half of the jump at the start of the month, indicating that labour market conditions remain fairly tight even as job growth is cooling.

Data this week offered the US Federal Reserve good news on two fronts, but policymakers have not openly shifted views yet about the timing of rate cuts investors are convinced will start this year.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Lower interest rates reduce the opportunity cost of holding non-yielding gold.

Atlanta Fed president Raphael Bostic said the April inflation report may have offered important clues about the direction of inflation, particularly a slowed rise in shelter cost.

The International Monetary Fund views recent US inflation data as “overall higher than we would like to see” and is urging the Federal Reserve to stay cautious and remain data-dependent.

Anglo American has suspended hiring globally, as it gets plans underway to simplify itself and build value – and avert a US$43 billion takeover bid by Australia’s BHP Group.

Asian markets go into the session looking to end a strong week on a positive note, and there appears to be no obvious reason why the recent upswing should reverse unless investors opt for a bout of profit-taking ahead of the weekend.

Spot silver was flat at US$29.61 per ounce, platinum was up 0.4 per cent at US$1,061.80 and palladium fell 0.5 per cent to US$989.44. REUTERS