Gold steadies before US payrolls data, set for second weekly loss
GLD•Spot gold was little changed at $4,184.45 an ounce on Friday but was down more than 2% for the week, as investors awaited US payrolls data. Traders priced in a 28% chance of a rate hike this month, down from about 70% earlier in the week.
1. Gold awaits payrolls data
Spot gold was little changed at $4,184.45 per ounce by 0419 GMT on Friday and remained on track for a second straight weekly decline. US gold futures rose 0.3% to $4,214.70. A firmer dollar and elevated Treasury yields pressured gold, while investors awaited US nonfarm payrolls data due at 1230 GMT.
2. Rate expectations shift
Traders were pricing in about a 28% chance of a rate hike this month, compared with about 70% earlier in the week, and an 82% chance of a December increase. A hot payrolls report may raise the likelihood of rate hikes, which could weigh further on gold, said Capital.com analyst Kyle Rodda. Higher borrowing costs typically reduce gold's appeal because it pays no interest.
3. Other metals decline weekly
Silver rose 0.5% to $61.18 per ounce, platinum gained 0.6% to $1,734.44 and palladium rose 0.9% to $1,181.93. All three metals were poised for weekly losses.
