Precise Investors Editorial Team
Spot gold edged up 0.1% to $4,182.45 an ounce
Gold prices were little changed on Friday as investors awaited U.S. jobs data for clues on the central bank’s interest-rate path, while a stronger dollar and higher Treasury yields limited the appeal of non-yielding bullion.
Spot gold edged up 0.1% to $4,182.45 an ounce by 04:53 GMT, while U.S. Gold Futures gained 0.2% to $4,212.05.
The yellow metal was on track for a second straight weekly decline, down more than 2% so far this week.
The US Dollar Index edged down 0.2%, but remained near a 17-month high reached in the previous session. It was on track for a 1% weekly rise, making gold more expensive for holders of other currencies.
Meanwhile, the U.S. 10-year Treasury yield briefly jumped to 5.344% on Thursday, its highest since 2002, before easing to almost 5.25% on Friday.
Markets are focused on the September nonfarm payrolls report, due later on Friday. Economists expect U.S. employers to have added nearly 90,000 jobs, down from 162,000 in August, while the unemployment rate is expected to remain at 4.1%.
The central bank raised its benchmark rate by 25 basis points last month to 3.75%-4.00%, its first hike in three years, and indicated further increases could follow.
However, cooler inflation readings have reduced expectations for another hike this month, with markets pricing about a 28% chance of an October increase, down sharply from 69% a week earlier.
Gold had gained some support earlier in the week after softer-than-expected U.S. inflation data reduced rate-hike bets. Traders, however, remain wary that persistent oil-price gains and higher bond yields could keep inflation pressures elevated.
Higher oil prices, driven by escalating Middle East tensions, have also contributed to the recent rise in world bond yields, reinforcing the competing forces of safe-haven demand and higher opportunity costs for holding gold.
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