Spot gold was little changed at $2,516.00 per ounce, after reaching a one-week high of $2,523.29
Gold held below a one-week high on Friday and was set for a weekly gain, as market participants focussed on U.S. jobs data that could shape the size of an expected rate cut this month.
Spot gold was little changed at $2,516.00 per ounce as of 0221 GMT, after reaching a one-week high of $2,523.29 in the previous session. Bullion has jumped 0.5% for the week and 22% for the year so far.
U.S. gold futures rose 0.1% to $2,545.70.
Bullion typically performs better in a low-interest-rate environment and is viewed as a safe asset during periods of uncertainty.
Bets for a 50-bp rate cut by the Fed on September 18 have risen to 41% from 34% a week ago, as per the CME Group’s FedWatch tool. The U.S. nonfarm payrolls (NFP) data due at 1230 GMT could provide further clarity.
Gold prices are likely to edge higher if the upcoming nonfarm payrolls report shows signs of labour market weakness, though the market could experience bouts of volatility, according to Sugandha Sachdeva, founder of SS WealthStreet.
Prices seem poised to test new highs, potentially reaching the $2,680–$2,700 range this year, she said, adding that geo-political tensions, weakness in the dollar, persistent central bank buying and uncertainty surrounding the U.S. elections had underpinned the outlook for gold.
Data on Thursday showed that U.S. private employers hired the fewest number of workers in 3-1/2 years in August, while the number of Americans filing new applications for jobless benefits declined last week.
Elsewhere, Perth Mint’s gold product sales rose last month, while silver sales slipped more than 30% on a monthly basis.
