Gold faces weekly loss on bets US interest rates will be higher for longer

Gold prices on Friday were on track for a fourth consecutive weekly loss as investors bet the Federal Reserve will keep interest rates higher for longer, weighing on non-yielding bullion.

FUNDAMENTALS
* Spot gold held steady at $1,911.85 per ounce by 0023 GMT, but was down 0.4% for the week. U.S. gold futures ticked up 0.1% to $1,917.70.


* U.S. private payrolls increased more than expected in June, indicating strength in the labour market despite growing risks of a recession from higher interest rates.

* Fed Bank of Dallas President Lorie Logan said there was a case for a rate rise at the June policy meeting, in comments that affirmed her view that more rate increases will be needed to cool off a still-strong economy.

* Gold is highly sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding non-yielding bullion.

* Investors now see a 92% chance of a 25-basis-point hike in July after last month's pause, according to CME's Fedwatch tool.

* Further weighing on gold, the yield on 10-year Treasury notes climbed to its highest since March 2 after the labor market data on Thursday.

* Investors will now scan Friday's U.S. nonfarm payrolls report for more clarity on the Fed rate-hike path, as they keep a close watch on U.S. Treasury Secretary Janet Yellen's Beijing visit amid renewed tensions.

* Elsewhere, the Bank of Japan Deputy Governor Shinichi Uchida vowed to keep its yield curve control policy for now, the Nikkei newspaper reported on Friday.

* Spot silver fell 0.2% to $22.6994 per ounce, platinum was little changed at $901.18.

* Palladium shed 0.2% to $1,238.87, but headed for a 1% weekly gain.