Gold futures on Friday were on track for a weekly loss as recent U.S. jobs data and hawkish comments from Federal Reserve policymakers strengthened bets for higher-for-longer interest rates, weighing on non-yielding bullion.
U.S. gold futures gained 0.4% to $1,922.60 but were down 0.4% for the week. Spot gold edged 0.3% higher to $1,916.39 per ounce.
U.S. private payrolls figures indicate strength in the labor market despite growing risks of a recession from higher interest rates, with investors now bracing for the June non-farm payrolls data for further cues on the Fed’s policy trajectory.
Meanwhile, Fed Bank of Dallas President Lorie Logan said there was a case for a rate rise at the June policy meeting, in comments that affirmed her view that more rate increases will be needed.
Market participants also kept a close watch on U.S. Treasury Secretary Janet Yellen’s Beijing visit amid tensions over China’s curbs on gallium and germanium exports.
