Gold held near $4,182.45 an ounce on Friday, steady but on track for a second straight weekly drop, as a stronger dollar and elevated Treasury yields offset safe-haven demand. Traders now await the U.S. September jobs report for clues on the Federal Reserve's next move.
Dollar strength and yields cap gold's rebound
Spot gold edged up 0.1% to $4,182.45 an ounce by 00:53 ET on Friday. U.S. gold futures, meanwhile, rose 0.2% to $4,212.05. The metal remains on track for a second straight weekly decline, down more than 2% so far this week.
The US Dollar Index edged down 0.2% but stayed near a 17-month high reached in the previous session. It is on track for a 1% weekly rise, which makes gold more expensive for holders of other currencies. Meanwhile, the 10-year Treasury yield briefly climbed to 5.344% on Thursday, its highest since 2002, before easing to around 5.25% on Friday.
Jobs report looms over the Fed's rate path
Markets are focused on the September nonfarm payrolls report due later Friday, which could shape the Federal Reserve's next move. Economists expect employers to have added nearly 90,000 jobs, down from 162,000 in August. The unemployment rate, meanwhile, is expected to hold at 4.1%.
The Fed raised its benchmark rate by 25 basis points last month to 3.75%-4.00%, its first hike in three years, and indicated further increases could follow. However, cooler inflation readings have reduced expectations for another move this month, with markets now pricing about a 28% chance of an October increase, down sharply from 69% a week earlier.
Oil and yields complicate the outlook
Gold had gained support earlier in the week after softer-than-expected U.S. inflation data reduced rate-hike bets. Traders, however, remain wary that persistent oil-price gains and higher bond yields could keep inflation pressures elevated, since escalating Middle East tensions have contributed to the recent rise in global bond yields.
Other metals edge higher
Other precious and industrial metals gained during Asian hours. Silver rose 0.4% to $61.247 per ounce. Platinum, meanwhile, gained 0.8% to $1,740.60 an ounce.
Copper futures on the London Metal Exchange edged up 0.6% to $14,353.33 a ton. U.S. copper futures, meanwhile, rose 0.7% to $5.59 a pound.
Source: Commodities & Futures News
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