Gold prices were flat on Friday but were set for their best week in three ahead of a US jobs report, helped by the dollar’s retreat on expectations that the US Federal Reserve will slow the pace of interest rate hikes.
fundamentals
* Spot gold was little changed at $1,800.78 an ounce as of 0037 GMT, having hit its highest level since August 10 earlier in the session. US gold futures GCV1 was flat at $1,814.60.
* Bullion jumped nearly 2% on Thursday, setting it on track for its second straight weekly gain.
* The dollar index was headed for a weekly loss of more than 1%. A weaker dollar makes gold cheaper for overseas buyers.
* Fed Chair Jerome Powell said on Wednesday the US central bank could reduce the pace of its interest rate hikes until December.
* Lower interest rates improve the appeal of gold because it lowers the opportunity cost of holding non-yielding bullion.
* Investors’ attention is now focused on non-farm payrolls (NFP) data from the US Labor Department at 1330 GMT.
* US consumer spending rose solidly in October, while inflation eased.
* Global factory output fell broadly last month, U.S. manufacturing activity contracted for the first time in 2-1/2 years and China’s COVID-19 lockdown weathered the effects of a slowdown in Europe, though a recession loomed, a survey showed on Thursday. got to know.
* JPMorgan will join HSBC in storing bullion for the world’s biggest gold-backed exchange-traded fund (ETF), the fund’s operator said on Thursday, ending its rival’s sole custodianship of $52 billion of gold. done.
* SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.16% on Thursday.
* Spot silver slipped 0.5% to $22.26, platinum fell 0.2% to $1,039.75 and palladium fell 0.7% to $1,927.21.
