Gold prices edge down ahead of US jobs data, but set for weekly gain

Gold prices inched lower on Friday (Jun 7) but were heading for their first weekly gain in three, with investors waiting for US non-farm payrolls data later in the day for clues on the outlook for interest rate cuts.

Spot gold was down 0.2 per cent at US$2,371.04 per ounce, as at 0144 GMT. Bullion gained about 2 per cent for the week so far.

US gold futures were unchanged at US$2,384.50.

The US dollar hovered close to an eight-week low and benchmark 10-year US Treasury yields hit their worst week since Dec 2023, making non-yielding bullion more attractive for investors.

Gold prices are expected to hit another record high this year despite a dip in physical demand, consultancy Metals Focus said, as interest rate cuts arrive against a backdrop of US-China tensions and conflict in Ukraine and the Middle East.

Investors now await the non-farm payrolls data due at 1230 GMT to gauge the US economy’s health and if it will deter the US Federal Reserve from cutting rates in September.

Traders are currently pricing in about a 68 per cent chance of a rate cut in September, according to CME FedWatch tool.

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

The Perth Mint’s gold product sales fell in May to their lowest level since March, while silver sales rose 16 per cent for the month, the refiner said.

SEE ALSO

Gold prices drift higher ahead of US payrolls data

Poland has increased its gold reserves, recently buying 5 tonnes of gold, and it plans to keep increasing such reserves, Polish central bank governor Adam Glapinski said.

The London Bullion Market Association said it is reviewing allegations involving Indonesian state miner Aneka Tambang over the purity of its gold products.

Spot silver fell 0.5 per cent to US$31.16 per ounce, platinum was up 0.4 per cent at US$1,006.75 and palladium lost 0.2 per cent to US$928.25. REUTERS