Gold prices were headed for a third straight weekly gain on Friday after easing slightly during the session as focus turned to a key US jobs report and Treasury yields ticked higher.
Spot gold eased 0.1% to $1,866.27 per ounce by 1132 GMT, after hitting its highest since May 9 at $1,873.79. Gold prices have risen about 0.7% so far this week.
US gold futures were down 0.1% at $1,869.40.
“Yesterday’s break above $1,860 can be seen as positive news for gold,” said Carlo Alberto De Casa, external market analyst at Kinesis.
“Many investors still believe that though central banks are scared by inflation, they are also scared by recession and therefore they would be cautious before raising rates.”
The dollar was steady after falling about 0.8% on Thursday, while US benchmark 10-year yields rose.
Investors will be watching US nonfarm payrolls data due at 1230 GMT that could give cues on the Federal Reserve’s pace of monetary policy tightening in the second half of the year. Signs of a tight labour market could keep the Fed’s foot on the pedal to cool demand. Higher US interest rates increase the opportunity cost of holding gold, which bears no interest, while boosting the dollar in which bullion is priced.
“I believe anything in line or above 325K will significantly bolster the dollar considering the recent strong manufacturing PMI release, as well as last night’s hawkish comments from the Fed’s (Loretta) Mester,” DailyFX analyst Warren Venketas wrote in a note about the jobs data. Spot silver rose 0.7% to $22.44 per ounce and was headed for a third straight weekly rise.
Platinum was up 0.4% at $1,026.53 per ounce and was up 7.6% for the week, the most since February 2021.
Palladium fell 1% to $2,033.20 per ounce and was down more than 1% for the week.