Gold Set for Best Week Since August

Gold prices edged higher on Friday and were on track for their best week in 15 weeks, as the U.S. dollar weakened on renewed speculation of an imminent pause in the U.S. Federal Reserve’s tightening cycle.

Investors have their eyes on U.S. non-farm payrolls data, expected at 08:30 a.m. ET, for clues about the health of the world’s biggest economy which could influence the Fed’s monetary policy.

U.S. unemployment and wage data are also expected on Friday.

Spot gold acquired 0.1% to $1,238.37 U.S. per ounce, having hit a near five-month peak at $1,244.32 per ounce in the previous session. With a rise of nearly 1.5% this week, gold looked set to clock its best gain since the week of Aug. 24.

U.S. gold futures were also marginally higher at $1,243.80 U.S. per ounce.

Gold participants were hopeful after the Wall Street Journal reported that Federal Reserve officials were considering whether to signal a new wait-and-see mentality after a likely interest rate increase at their meeting in December.

Higher interest rates make gold less attractive since it does not pay interest and costs to store and insure.

Silver was unchanged at $14.47 U.S. per ounce, while palladium slipped 1% to $1,197.76 per ounce.

Platinum rose marginally to $787.30 U.S. per ounce, extending losses into a fifth successive week. Platinum has slipped around 1.3% this week.