Gold heads for small weekly gain with US jobs data on tap

Among other metals, spot silver XAG= fell 0.3% to $66.76 per ounce, platinum XPT= slipped 1.2% to $1,803.99 per ounce, and palladium XPD= dropped 1.1% to $1,405.53.

Citi said it remains bullish on precious metals, with its 0–3-month point price target for gold at $4,800 per ounce and 6–12-month forecast of $5,000.

"Momentum in gold prices will likely attract retail buying similar to the second half of 2025, both physical and futures globally," Citi said in a note.

Gold demand in India improved this week as a drop in prices spurred some buying interest, while investment flows continued to support consumption in top consumer China. GOL/AS

Traders scaled back bets for a September rate hike after Waller said he was leaning toward keeping interest rates steady at the central bank's policy meeting this month if upcoming inflation data shows moderating price pressures.

"The news that Governor Waller was leaning towards no increase gave gold something of a steroid shot, with the metal gaining around 2%. But the effect is likely to prove short-lived as fresh data takes precedence," independent analyst Ross Norman said.

"There is a sense of refreshed optimism among gold investors just now, almost as if the market is looking for excuses to move higher," Norman said.

The U.S. nonfarm payrolls report is due at 1230 GMT, followed by the August CPI and PPI inflation reports next week.

Although gold is typically seen as an inflation hedge, higher interest rates tend to diminish non-yielding bullion's appeal.