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Gold down 1.2% this week so far
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U.S. Feb payrolls data due at 1330 GMT
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U.S. dollar on track for weekly gain
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Silver set for worst week since mid-Oct
(Updates prices)
By Kavya Guduru
March 10 (Reuters) - Gold prices edged up on Friday as
investors looked forward to the U.S. non-farm payrolls report
due later in the day to assess the likely path of the Federal
Reserve's rate-tightening cycle.
Spot gold was up 0.1% at $1,832.24 per ounce, as of 0716 GMT. U.S. gold futures also rose 0.1% to $1,836.20. Still, bullion lost 1.2% so far this week and was set for a fifth weekly drop in six. "The recent hawkish comments from the U.S. Fed Chair, a recovery in the greenback and easing fears of a recession in many economies caused a withdrawal of investment from gold-like safe-havens," said Hareesh V, head of commodity research at Geojit Financial Services. Earlier this week, Fed Chair Jerome Powell warned of higher and potentially faster interest rate hikes to contain high inflation. Higher interest rates to control rising prices discourage investment in non-yielding gold. Gold jumped more than 1% on Thursday after data showed the number of Americans filing new claims for unemployment benefits last week increased by the most in five months, spurring hopes that a softening labor market could pave the way for less-aggressive rate hikes from the Fed. Investors' attention is now on the U.S. non-farm payrolls (NFP) data due at 1330 GMT. The report is expected to show non-farm payrolls increased by 205,000 in February, according to economists polled by Reuters.
Gold will likely "trade choppy" as investors await the U.S.
NFP and unemployment data to get "fresh cues" on the Fed's next
moves, Geojit's Hareesh said.
The dollar index was on track for a weekly gain,
making bullion more expensive for overseas buyers. Gold may retest a resistance at $1,838, a break above could
lead to a gain into $1,845-$1,858 range, Reuters technical
analyst Wang Tao said.
Spot silver fell 0.2% to $20.03 per ounce, platinum shed 1.3% to $932.20 and palladium lost 0.9% to
$1,376.46.
All three metals were set for a weekly decline, with silver
bound for its worst week since mid-October last year.
(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry
Jacob-Phillips)
