Gold eases but eyes weekly gain; US payrolls data on tap
GOLD inched lower on Friday on some profit-taking, but was on track for a weekly rise as uncertainty around US President Donald Trump’s tariff plans firmed demand, while investors awaited US non-farm payrolls data.
Spot gold eased 0.2 per cent to US$2,904.98 an ounce as of 0325 GMT. Bullion has gained 1.6 per cent so far this week.
US gold futures lost 0.5 per cent to US$2,911.90.
“Markets are waiting for fresh triggers regarding what is likely to happen going forward with respect to the trade war...This small profit-taking would be a good opportunity to re-enter long positions,” said Kunal Shah, head of research, Nirmal Bang Commodities, Mumbai.
Trump on Thursday suspended the 25 per cent tariffs he imposed this week on most goods from Canada and Mexico, the latest twist in a fluctuating trade policy that has whipsawed financial markets and fanned worries over inflation and a growth slowdown.
The ongoing trade tensions, inflation uncertainty, and a weaker dollar signalling a slowing economy, are all bullish for gold, Shah said.
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The US dollar index was hovering near a four-month low.
Trump’s policies, widely seen as likely to stoke economic uncertainties, have helped safe-haven gold rise more than 10 per cent so far this year.
Federal Reserve Governor Christopher Waller said he leans strongly against a rate cut at the Fed’s upcoming policy meeting this month, although he reckons cuts later in the year remain on track if inflation pressures continue to abate.
Bullion is seen as a hedge against political risks and inflation, but higher interest rates dampen the non-yielding asset’s appeal.
Spotlight is on the non-farm payrolls report due at 1330 GMT, which is expected to show a gain of 160,000 jobs for February, a Reuters survey showed.
Spot silver fell 0.4 per cent to US$32.51 an ounce and platinum firmed 0.1 per cent to US$967.58, while palladium edged 0.1 per cent lower to US$941.21.
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