- Bullion up over 3% so far in the week
- Focus on US PPI and CPI data due next week
- Silver, platinum, palladium up for the week
May 10 (Reuters) - Gold prices strengthened on Friday and were on track for their best week since early April, as weak U.S. employment figures fuelled bets of interest rates cuts by the Federal Reserve this year.
Spot gold gained 1.1% to $2,372.46 per ounce by 1203 GMT, hitting its highest in more than two weeks. Prices have risen over 3% so far in the week.
U.S. gold futures jumped 1.7% to $2,379.30.
On the gold market, "focus is likely to be on the development of consumer prices in the U.S. after progress in the fight against inflation has been considered insufficient in recent months and interest rate hopes have been scaled back," Commerzbank said in a note.
Gold extended gains after jumping 1% on Thursday in response to data showing the number of Americans filing new claims for unemployment benefits increased more than expected last week.
Investors are now looking forward to the U.S. producer price index and consumer price index data due next week for fresh clues on the Fed's rate trajectory.
According to the CME FedWatch Tool, traders are pricing in about a 68% chance of a Fed rate cut in September. Lower interest rates reduce the opportunity cost of holding non-yielding gold.
However, there is "considerable" uncertainty about where U.S. inflation will head in the coming months, San Francisco Federal Reserve President Mary Daly said on Thursday.
Meanwhile, Palestinian residents reported about Israeli forces bombarding the city of Rafah in the Gaza Strip on Thursday, while an Israeli official confirmed the end of indirect negotiations with Hamas.
"The next target for the gold can be seen in the region of $2,380," De Casa said.
Spot silver rose 0.8% to $28.56, platinum firmed 1.7% to $990.73 and palladium added 1.9% to $985.81. All three metals were up for the week.
Reporting by Daksh Grover in Bengaluru; Editing by Shilpi Majumdar and Varun H K
Source: Reuters