Gold prices edged higher during Asian trading on Friday and are on track for strong weekly gains as investors wait for the latest US jobs report. The data could provide important clues about the Federal Reserve’s next interest rate decision.
Spot gold rose 0.4% to $4,103.55 an ounce by 00:23 GMT, putting it on track for a weekly gain of around 5.9%. Meanwhile, US gold futures for December delivery settled at $4,112.80 an ounce.
Investors are closely watching the US non-farm payrolls report to understand the strength of the labor market and how it could affect the Fed’s interest rate plans. According to CME Group’s FedWatch tool, traders see a 71% chance of an interest rate increase in December.
Higher interest rates usually put pressure on gold because the metal does not pay interest. This makes gold less attractive compared to investments that offer returns.
Other precious metals also moved higher. Spot silver gained 0.5% to $52.01 an ounce, while platinum remained unchanged at $1,517.20 and palladium held steady at $1,031.01 an ounce. All three metals are also heading towards weekly gains.