Gold drifts lower in run-up to US payrolls data
Business
Bullion lost 1.4% so far this week and is set for a fifth weekly drop in six.
NEW YORK (Web Desk) - Gold prices eased on Friday as investors looked forward to the US non-farm payrolls report due later in the day to assess the likely path of the Federal Reserve’s rate-tightening cycle.
Spot gold was down 0.1% at $1,829.40 per ounce, as of 0544 GMT.
US gold futures also fell 0.1% to $1,832.90.
Bullion lost 1.4% so far this week and is set for a fifth weekly drop in six.
“The recent hawkish comments from the US Fed Chair, a recovery in the greenback and easing fears of a recession in many economies caused a withdrawal of investment from gold-like safe-havens,” said Hareesh V, head of commodity research at Geojit Financial Services.
Earlier this week, Fed Chair Jerome Powell warned of higher and potentially faster interest rate hikes to contain high inflation. Higher interest rates to control rising prices discourage investment in non-yielding gold.
Gold jumped more than 1% on Thursday after data showed the number of Americans filing new claims for unemployment benefits last week increased by the most in five months, spurring hopes that a softening labor market could pave the way for less-aggressive rate hikes from the Fed. Investors’ attention is now on the US non-farm payrolls (NFP) data due at 1330 GMT.
The report is expected to show non-farm payrolls increased by 205,000 in February, according to economists polled by Reuters.
Gold will likely “trade choppy” as investors await the US NFP and unemployment data to get “fresh cues” on the Fed’s next moves, Geojit’s Hareesh said.
The dollar index was on track for a weekly gain, making bullion more expensive for overseas buyers.
Gold may retest a resistance at $1,838, a break above could lead to a gain into $1,845-$1,858 range, Reuters technical analyst Wang Tao said.
Spot silver lost 0.5% to $19.97 per ounce, platinum shed 1.3% to $932.48 and palladium fell 0.5% to $1,382.43.
All three metals were set for a weekly decline, with silver bound for its worst week since mid-October last year.
