As markets awaited crucial U.S. non-farm payrolls data, gold prices remained almost unchanged on Friday, signaling caution among investors who refrained from significant positions ahead of potential shifts in the Federal Reserve’s monetary policy.
At 0046 GMT, spot gold was nearly flat at $2,302.51 per ounce, while U.S. gold futures hovered at $2,310.40 per ounce, showing little movement. However, gold was on track for its second consecutive weekly decline, down more than 1% for the week.
The focus remained on the upcoming release of the non-farm payrolls report scheduled for 1230 GMT. Following the Federal Reserve’s decision to maintain interest rates earlier in the week, investors are keen to gauge the trajectory of U.S. economic recovery and its implications for future monetary policy adjustments.
While the Fed has signaled potential reductions in borrowing costs, concerns over persistently low inflation have tempered expectations for imminent rate cuts, affecting gold’s appeal as an inflation hedge. Elevated interest rates typically reduce the attractiveness of holding the non-yielding metal.
Data released on Thursday indicated that the number of Americans filing new claims for unemployment benefits remained steady at a low level last week, suggesting a relatively tight labor market that could continue to support economic growth in the second quarter.
In other precious metals, spot silver dipped 0.2% to $26.65 per ounce, marking a nearly 2% decline for the week. However, platinum saw a gain of nearly 0.8% to $957.15 per ounce, heading for a weekly increase. Palladium edged up 0.2% to $937.57.
Meanwhile, the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a slight decrease in its holdings to 829.60 tonnes on Thursday from 831.04 tonnes on Wednesday.
Looking ahead, investors are also monitoring key economic data releases, including the UK S&P Global PMI, EU Unemployment Rate, and U.S. ISM Non-Manufacturing PMI, for further insights into global economic trends and their potential impact on financial markets.