Gold set for weekly gain as markets await US payrolls data

Gold prices ticked up in early Asian trade on Friday and were poised for a weekly gain, as investors awaited the US non-farm payrolls report later in the day for fresh clues on the Federal Reserve's interest rate path.

Fundamentals

Spot gold rose 0.4% to $4,103.55 per ounce by 0023 GMT, and remained on track for a weekly gain of 5.9% so far. US gold futures for December delivery steadied at $4,112.80. * The US non-farm payrolls report is due at 1330 GMT.

The number of Americans filing new claims for unemployment benefits slipped to a 57-year low last week, pointing to labor market resilience, though uncertainty over the drawn-out conflict in the Middle East is constraining hiring.


Two Federal Reserve officials on Thursday made a case for modest and steady interest rate increases to tackle above-target inflation, in the first round of comments from central bankers after Democrats won control of congress and made gains at the state level in elections that could change the path of price pressures in the economy.

Traders currently see a 71% chance that the Fed will raise rates in December, according to CME's FedWatch tool.

Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.

The Bank of England raised interest rates for the first time in over three years on Thursday and warned that at least one more increase was likely if the US-Iran conflict continues.

The European Central Bank is looking at indicators to see if an interest rate hike will be warranted next month, after it held rates steady in October, the bank's outgoing President Christine Lagarde said on Thursday.

Meanwhile, Goldman Sachs on Thursday lowered its end-2026 gold price forecast to $4,150 per ounce from $4,650, citing the implications of the US Federal Reserve's more hawkish policy stance in recent months.

Poland's central bank has reached its previously stated target for gold reserves of 700 metric tons, Governor Adam Glapinski said on Thursday, leaving the door open to further purchases.

Among other metals, spot silver rose 0.5% to $52.01 per ounce, platinum was little changed at $1,517.20 and palladium steadied at $1,031.01. All three metals were headed for weekly gains.

Data/Events (Gmt)

0700 Germany Industrial Output, MM, September

0700 Germany Industrial Output YY SA, September

0700 UK Lloyds House Prices MM, YY, October

0745 France Reserve Assets Total, October

0700 Germany Consumer Goods SA, September

1330 US Non-Farm Payrolls, October

1330 US Unemployment Rate, October

1330 US Average Earnings YY, October

1500 US U Mich Sentiment Prelim, November