Gold heading for worst weekly loss since February
investmentnews.comGold headed for its first back-to-back weekly loss in more than two months on concerns that the Federal Reserve may take longer to cut interest rates than previously expected as inflation risks persist.
Investors are counting down to the monthly US jobs data later Friday for more insight into the strength of the economy. Data Thursday showed labor costs jumped the most in a year as productivity gains slowed, adding to price pressures. Fed Chair Jerome Powell said Wednesday policymakers need more evidence that price gains are cooling before reducing borrowing costs.
Bullion was steady above $2,300 an ounce on Friday. The nonfarm payrolls report may show a slower pace of gains, which could help bolster bets on rate cuts. Lower rates are typically positive for the non-interest bearing metal.
Gold has climbed 12% this year and continues to trade near record highs. The metal has been bolstered by strong central-bank purchases, robust appetite in China and haven demand amid conflicts in Ukraine and the Middle East. The dollar fell the most since December on Thursday, also lending support.
Spot gold was flat at $2,304.18 an ounce at 9:20 a.m. in Singapore. The Bloomberg Dollar Spot Index edged lower after falling 0.7% Thursday. Silver, platinum and palladium were stronger.
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