Mumbai, 5 Jul (Commoditiescontrol): Gold prices inched higher on Friday, poised for a second consecutive weekly gain as traders anticipated U.S. employment data that could influence the Federal Reserve's potential interest rate cuts.
Spot gold rose 0.2% to $2,359.73 per ounce, marking an over 1% increase for the week, while U.S. gold futures dipped 0.1% to $2,366.10.
The U.S. dollar was set for a weekly decline, making dollar-priced bullion more appealing to buyers with other currencies. Analysts noted that weaker U.S. macroeconomic data this week has benefited gold. Reports on Wednesday highlighted a slowdown in the U.S. economy, with weak services and ADP employment figures. Additionally, there was an uptick in initial U.S. unemployment benefit applications last week.
The market's attention is now on the U.S. nonfarm payrolls report, expected at 1230 GMT. A lower-than-expected jobs number could bolster investor sentiment, as it would increase the likelihood of a Fed rate cut in September. Such a cut could push gold towards the $2,400 level.
Gold has been consolidating above $2,300, which is promising for potential price gains in a lower interest rate environment. Currently, traders are pricing in about a 73% chance of a September Fed rate cut, according to the CME FedWatch Tool. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
In other precious metals, spot silver rose 0.4% to $30.53, heading for its best week since May 17. Platinum fell 0.3% to $999.86, while palladium gained 0.4% to $1,021.75, aiming for a third consecutive weekly gain.
(By Commoditiescontrol Bureau: 09820130172)
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