Gold prices fell on Friday, but were heading for their first weekly gain in three weeks, with investors awaiting U.S. nonfarm payrolls data later in the day for clues to the rate cut outlook. ‘interest.
FUNDAMENTALS
* Spot gold was down 0.2% at $2,371.04 per ounce at 0144 GMT. The metal has gained about 2% for the week so far.
* U.S. gold futures were unchanged at $2,384.50.
* The dollar hovered near an eight-week low and benchmark 10-year U.S. Treasury yields hit their worst week since December 2023, making the unprofitable metal more attractive to investors.
* Gold prices are expected to hit another record this year despite a drop in physical demand, according to consultancy Metals Focus, as interest rate cuts come amid tensions between the US and China and conflicts in Ukraine and the Middle East.
* Investors now await non-farm payrolls data, due at 12.30 GMT, to gauge the health of the US economy and whether it will dissuade the Federal Reserve from cutting rates in September.
*Traders are currently pricing in about a 68% chance of a rate cut in September, according to CME tool FedWatch.
* Lower interest rates reduce the opportunity cost of holding unprofitable bullion.
* Sales of gold products at the Perth Mint fell in May to the lowest level since March, while silver sales rose 16% in the month, the refiner said.
* Poland has increased its gold reserves, recently purchasing 5 tons of gold, and plans to continue increasing them, Polish central bank governor Adam Glapinski said.
* The London Bullion Market Association (LBMA) said it is looking into allegations involving Indonesian state miner Aneka Tambang (Antam) over the purity of its gold products.
* Spot silver fell 0.5% to $31.16 an ounce, platinum rose 0.4% to $1,006.75 and palladium lost 0.2% to $928.25 .
DATA/EVENTS (GMT) 1230 US Non-Farm Payrolls May 1230 US Manufacturing Payrolls May 0200 US Wholesale inventories April 0830 HK FX Reserves May (Reporting by Sherin Elizabeth Varghese in Bengaluru; Writing by Janane Venkatraman)
