Mumbai, 11 May (Commoditiescontrol): Gold prices closed higher on Friday, reporting their best week in five, with zero-yield bullion building on momentum fuelled by weaker U.S. jobs data this week that reinforced expectations for interest rate cut by the Federal Reserve.
Spot gold rose 0.71% to $2,362.49 per ounce, while U.S. gold futures for June delivery rose 1.26% to $2,369.60 per ounce. Gold gained more than 1% on Thursday after data showed a bigger-than-expected rise in weekly claims for state unemployment benefits.
The surge in gold buying is mostly technically driven, but last week's payroll data and Thursday's initial unemployment claims data are lending support, said Phillip Streible, chief market strategist at Blue Line Futures.
Financial markets expect the U.S. central bank to start easing its cycle in September.
Lower interest rates generally tend to boost the appeal of bullion since it pays no interest. Investors are now looking forward to the U.S. producer price index and consumer price index data due next week, both of which could significantly impact gold and silver prices.
Meanwhile, near-record domestic prices stifled demand for physical gold in India, the world's second-biggest consumer, during a key festival. Spot silver fell 0.47% to $28.203 per ounce, while spot platinum rose 1.63% to $993.90 per ounce and spot palladium rose 1.71% to $983.50 per ounce.
(By Commoditiescontrol Bureau: 09820130172)
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