Gold flat ahead of US payrolls data, set for 2nd weekly drop
Fri May 03 2024
Gold prices were set for a second consecutive weekly fall, even as bullion traded almost flat on Friday as investors refrained from taking big positions ahead of U.S. non-farm payrolls data that could offer more cues on the Federal Reserve's policy path.
FUNDAMENTALS
* Spot gold was nearly unchanged at $2,302.51 per ounce, as of 0046 GMT. Prices were down more than 1% this week. U.S. gold futures were flat at $2,310.40 per ounce.
* The non-farm payrolls report is due at 1230 GMT.
* The U.S. central bank held interest rates steady on Wednesday and indicated
it is still leaning towards eventual reductions in borrowing costs, but put a
red flag on recent disappointing inflation readings that could make those rate
cuts a while in coming.* Bullion is known as an inflation hedge, but elevated interest
rates reduce the appeal of holding the non-yielding asset.
* Data on Thursday showed the number of Americans filing new claims for
unemployment benefits held steady at a low level last week, pointing to a still
fairly tight labour market that should continue to underpin the economy in the
second quarter.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said
its holdings fell 0.17% to 829.60 tonnes on Thursday from 831.04 tonnes on
Wednesday.
* Spot silver fell 0.2% to $26.65 per ounce and was down nearly 2% for the
week.
* Platinum gained nearly 0.8% to $957.15 and was on track for a weekly gain.
Palladium edged up 0.2% to $937.57.
Source: https://economictimes.indiatimes.com/