*
U.S. nonfarm payrolls figures due at 1230 GMT
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Gold up 2.3% for the week
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Global gold demand fell in the first quarter of 2023, WGC
says
(Updates prices)
By Arundhati Sarkar
May 5 (Reuters) - Gold prices fell from near-record
highs on Friday as investors waited for more economic cues, but
banking woes and hopes for a pause in U.S. rate hikes kept
safe-haven bullion on course for its best week in nearly two
months.
Spot gold fell 0.7% to $2,036.74 per ounce by 1138
GMT, which some analysts termed a "consolidation", but was up
2.3% for the week. U.S. gold futures shed 0.5% to
$2,045.90.
Gold hit $2,072.19 on Thursday, just shy of a record high of
$2,072.49, after the Federal Reserve hinted that its marathon
hiking cycle may be ending.
Investors now await data including U.S. nonfarm payrolls
figures at 1230 GMT, that could build the case for a rate cut,
after Fed Chair Jerome Powell pushed back on such expectations. After a strong performance, gold's in a bit of a
wait-and-see mode ahead of U.S. payrolls, and will be sensitive
to "short-term reversals in interest rate expectations, wider
reaching deposit guarantees, and U.S. dollar strength" in the
short term, said UBS analyst Giovanni Staunovo.
"But, gold should remain a hedge within a portfolio
context."
Global stocks eked out small gains as investors focused on
bets of central banks pausing rate increases in light of another
rout in shares of U.S. regional lenders.
Economic uncertainty and lower rates boost demand for
zero-yielding gold.
"But if we see further panic around the debt ceiling or U.S.
banks, hold onto your hats as I fear price action could get
nasty around these highs and punish bulls and bears," said Matt
Simpson, senior market analyst at City Index, warning that in
"times of severe stress all markets, including gold, can fall."
Meanwhile, global gold demand fell in the first three months
of 2023, the World Gold Council (WGC) said on Friday.
Spot silver lost 0.7% to $25.88 per ounce, while
platinum rose 0.7% to $1,046.87.
Palladium gained 1.4% to $1,468.19.
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Gold weekly move ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Arundhati Sarkar and Ashitha Shivaprasad in
Bengaluru; Editing by Jane Merriman, Shilpi Majumdar and Krishna
Chandra Eluri)
