The price of gold neared a four-week high on Friday, poised for its best week since mid-November, as investors await U.S. jobs data to assess the aggressiveness of the Federal Reserve in cutting interest rates this year.
Spot gold rose 0.1% to $2,672.64 an ounce, as of 0309 GMT. Bullion has gained more than 1% since the start of the week.
U.S. gold futures rose 0.2% to $2,696.30.
Investors will closely watch the key government payrolls report scheduled for release at 8:30 a.m. ET. Nonfarm payrolls are expected to rise by 160,000 in December, following a jump of 227,000 in November, according to a Reuters poll.
“We expect gold to fall a bit in case the Nonfarm Payrolls (NFP) report comes in higher. Reports suggest that President-elect Trump may announce an economic emergency in order to put in place All these should support the dollar and gold may fall in the near term. That said, $2,650 is a good support,” said Jigar Trivedi, senior analyst at Reliance Securities.
Gold prices strengthened to a near four-week high in the previous session, supported by safe-haven demand, as investors weigh the impact of US President-elect Trump’s policies on the economy and inflation.
-Mr. Trump takes office on January 20, and his proposed tariffs and protectionist policies are expected to fuel inflation.
Kansas City Federal Reserve President Jeff Schmid signaled his reluctance to cut interest rates again on Thursday, as the U.S. central bank enters the new year facing a resilient economy and inflation that remains higher to its target of 2%.
Gold is used as a hedge against inflation, although rising interest rates reduce the appeal of holding this asset without yield.
Spot silver was up 0.4% at $30.24 an ounce, platinum was down 0.1% at $957.43 and palladium added 1.4% to $939.13 . All three metals were on track for weekly gains.
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