Gold heads for best week in seven ahead of US jobs data
GOLD prices on Friday (Feb 2) were set for their best week in seven, as the US dollar and Treasury yields retreated, while traders awaited key United States jobs numbers due later in the day to gauge timing on when the US Federal Reserve could start cutting interest rates.
Spot gold was flat at US$2,053.09 per ounce by 0211 GMT. Still, the contract has climbed 1.8 per cent so far this week, set for its best weekly gain since late December, if gains hold.
US gold futures were flat at US$2,070.30 per ounce.
Spot gold rose nearly 1 per cent on Thursday after data from the US Labor Department showed initial jobless claims rose more than expected last week.
A separate report showed that US worker productivity grew faster than expected in the fourth quarter.
Investor focus will shift to the US non-farm payrolls data due at 1330 GMT.
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Bullion was also supported by concerns over the regional banking sector in the US, increasing appeal for safe-haven assets such as bullion and Treasury bonds.
Yields on benchmark 10-year Treasury notes, which are inversely related to bond prices, languished near their lowest levels seen in 2024.
The US dollar index fell 0.4 per cent so far this week.
The Fed pushed back on the idea of an interest rate cut in the spring but expressed confidence in inflation moving towards the desired 2 per cent range, while doing away with a long-standing reference to possible further hikes.
Money market pricing shows traders are nothing but sure about a rate cut in May, according to LSEG’s interest rate probability app IRPR.
Lower interest rates boost non-yielding bullion’s appeal.
Spot silver fell 0.3 per cent to US$23.10 per ounce, platinum shed 0.5 per cent to US$908.55, while palladium edged 0.1 per cent higher to US$962.91. REUTERS
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