*
Friday's U.S. non-farm payrolls awaited
*
Gold up 2.3% so far this week
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U.S. dollar up 0.1%
(Updates prices)
By Kavya Guduru
April 6 (Reuters) - Gold prices retreated from one-year
highs on Thursday as the dollar regained some ground, while
investors awaited the U.S. non-farm payrolls report to gauge the
Federal Reserve's monetary policy strategy.
Spot gold fell 0.4% to $2,013.13 per ounce by 0701
GMT, after hitting its highest since March 2022 on Wednesday.
U.S. gold futures dipped 0.2% to $2,030.70.
The dollar index edged 0.1% higher, making
bullion expensive for overseas buyers. "This is a market due for some technical correction because
the rally was very sharp," said Ajay Kedia, director at Kedia
Commodities in Mumbai.
The economic data points this week were major components
supporting gold prices, he added, while also noting some
profit-booking ahead of the Good Friday holiday.
Bullion has gained about 2.3% so far this week, after a
surprise oil output cut by OPEC+ and weak U.S. economic data
over the week added to fears of an economic slowdown and sent
the yellow metal soaring above $2,000.
Wednesday's data showed the U.S. services sector slowed more
than expected in March. Separate data showed private sector job
adds fell well short of expectations.
Investors now await Friday's non-farm payrolls report for
March.
While gold is traditionally considered a hedge against
inflation and economic uncertainties, higher interest rates dim
non-yielding bullion's appeal.
Markets see a 59% chance of the Fed standing pat on interest
rates in May, according to CME's FedWatch tool. Cleveland
Federal Reserve Bank President Loretta Mester said it was too
early to know if the Fed would need to raise interest rates at
its May policy meeting.
"The gold trade is getting a bit overcrowded but the macro
backdrop still strongly remains firmly in its favor," Edward
Moya, a senior market analyst at OANDA, said in a note, adding
that gold's immediate resistance is at the $2,050 level.
Spot silver fell 0.6% to $24.82 per ounce, platinum gained 0.8% to $1,005.01, while palladium edged
0.1% lower to $1,427.74.
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(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry
Jacob-Phillips and Sohini Goswami)
