Gold prices edged up on Friday, poised for a weekly gain on safe-haven inflows and a U.S. jobs report that showed weaker-than-expected job growth in February, suggesting the Federal Reserve will cut interest rates this year.
Spot gold was up 0.3% at $2,918.11 an ounce by 9:24 a.m. (1424 GMT). Bullion has gained more than 2% so far this week, as U.S. President Donald Trump's ever-changing tariff policies fueled uncertainty.
U.S. gold futures were steady at $2,925.
The U.S. dollar index was on track for its worst weekly performance since Nov. 4, making dollar-priced bullion cheaper for foreign buyers. "The weaker-than-expected number gave gold a little lift… also the weaker dollar for the week helped," said Bob Haberkorn, senior market strategist at RJO Futures.
A Labor Department report showed the U.S. economy added 151,000 jobs in February, compared with a gain of 160,000 expected by economists polled by Reuters, while the unemployment rate was at 4.1% compared with expectations of 4%.
The market is currently in a consolidation phase, with safe-haven interest providing continued support, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Investors are also awaiting a speech by Fed Chairman Jerome Powell on the economic outlook later in the day, which could provide further insight into the path of monetary policy.
Despite being an inflation hedge, higher interest rates could dampen the appeal of non-yielding gold.
The market is currently pricing in a 76 basis point Fed rate cut by the end of the year, starting in June. China resumed its gold purchases for a fourth straight month in February, according to data from the People's Bank of China. Spot silver fell 1% to $32.28 an ounce and platinum fell 0.1% to $965.58, while palladium edged up 0.5% to $946. (Newsmaker23)
Source: Reuters
