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Gold treads water as all eyes on US Jobs data for Fed clues
[SINGAPORE] Gold headed for a second weekly decline ahead of a key US payrolls report that's expected to give investors direction on the Federal Reserve's tightening path.
Bullion for immediate delivery was little changed at US$1,314.40 an ounce at 9:03am in Singapore, according to Bloomberg generic pricing. The metal is down 0.5 per cent this week after touching US$1,302.56 on Thursday, the lowest level since June 24.
Gold's recent declines have eroded its 2016 rally as traders price in a higher probability of an interest rate increase in the world's largest economy, damping the appeal of bullion, which doesn't offer yield.
The US nonfarm payrolls report later Friday will be important in determining whether the Fed will raise borrowing costs as soon as this month. US employers probably added 180,000 jobs in August, according to economists' estimates.
"Longs still appear confident in their positioning, though a strong payrolls report may change this, with anything over 200,000 likely to increase the chance of a Fed hike," Jordan Eliseo, Sydney-based chief economist at trader Australian Bullion Co, said in an e-mail.