Gold rises, set for second weekly gain as focus flips to US jobs data
GOLD rose on Friday (Sep 1) and was poised for a second straight weekly gain, helped by diminished chances of US interest rate hikes this year after a data-filled week that concludes with the pivotal jobs report later in the day.
Spot gold gained 0.2 per cent to US$1,942.56 per ounce by 0130 GMT, looking set for a more than 1 per cent weekly gain after prices touched one-month highs on Wednesday. US gold futures climbed 0.2 per cent to US$1,969.40.
US Treasury yields and the US dollar were set to end the week lower, making gold attractive for other currency holders.
US consumer spending increased by the most in six months in July, but slowing monthly inflation rates cemented expectations that the Federal Reserve would keep interest rates unchanged next month.
Atlanta Fed president Raphael Bostic laid out a case on Thursday against any further US interest rate hikes, saying monetary policy is already tight enough to bring inflation back down to 2 per cent over a “reasonable” period.
Eurozone inflation held steady in August but underlying price growth fell as expected, a mixed picture that complicates life for the European Central Bank.
Japan’s factory activity shrank for a third straight month in August, a survey showed on Friday.
Impala Platinum chief executive said a rapid decline in palladium and rhodium prices that has squeezed profits, lowered dividend payouts and shifted the focus to cutting costs caught platinum miners off guard.
Other precious metals were on track for weekly gains as well. Spot silver added 0.4 per cent to US$24.53 per ounce, platinum rose 0.3 per cent to US$970.23 and palladium jumped 1.6 per cent to US$1,233.63. REUTERS
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