off-the-wire

PRECIOUS-Gold set for weekly gain on bets of Fed pause

Kitco Media
By Reuters
Published:
Updated:
Reuters
May 5 (Reuters) - Gold prices were flat on Friday but set for their biggest weekly gain in nearly two-months, as hopes of a pause in the U.S. central bank's interest rate hike cycle and banking worries bolstered the appeal of the safe-haven metal.


FUNDAMENTALS
* Spot gold was little changed at 2,048.81 per ounce by 0039 GMT, but it was up about 3% for the week. U.S. gold futures were up 0.1% at $2,057.10.
* The U.S. Federal Reserve on Wednesday signalled a likely pause in interest rate hikes.
* PacWest Bancorp is exploring strategic options, including a potential sale or capital raise, after a liquidity boost it announced in March failed to inspire confidence in its ailing share price.
* Economic uncertainty and lower rates boost demand for the zero-yield asset.
* The dollar index was set for a weekly drop, making gold more attractive for overseas buyers.


* Investors will keep a tab on the U.S. Labor Department's non-farm payrolls (NFP) data due at 1230 GMT.


* The European Central Bank slowed the pace of its rate increases on Thursday but signalled more tightening to come.


* Lofty prices have tarnished bullion demand in top Asian retail hubs.
* Spot silver fell 0.3% at $26.00 per ounce, platinum gained 0.3% to $1,042.15 and palladium edged 0.6% higher to $1,456.73.


DATA/EVENTS (GMT) 0145 China Caixin Services PMI April 0600 Germany Industrial Orders MM March 0600 Germany Manufacturing O/P Cur Price SA March 0600 Germany Consumer Goods SA March 0830 UK All-Sector PMI April 1230 US Non-Farm Payrolls April 1230 US Unemployment Rate April
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich)

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