Prices for gold edged higher on Friday and were on track for a third straight weekly gain, with investors keenly awaiting key U.S. jobs report to gauge the Federal Reserve’s rate-hike stance.
Spot gold was up 0.1% at $1,835 U.S. per ounce. Prices gained about 0.6% so far this week. U.S. gold futures were flat at $1,839.70.
The market’s focus shifts to the U.S. Labor Department’s closely watched nonfarm payrolls (NFP) data due at 8:30 a.m. EST.
Few Fed officials on Thursday reiterated their fight to lower inflation back to its 2% target, but St. Louis leader James Bullard said 2023 could finally bring some relief on the inflation front.
Higher rates dim bullion’s anti-inflationary appeal and raise the opportunity cost of holding the non-yielding asset.
Data on Thursday showed that U.S. private payrolls increased more than expected in December while number of Americans filing new claims for jobless benefits dropped to a three-month low last week, pointing to a still-tight labour market that could force the Fed to keep hiking interest rates.
