Economic news

Gold set for Best Week in 9 as USD Softens ahead of US Data

Feb 2 (Reuters) - Gold prices were poised for their biggest weekly gain in nine on Friday as the dollar and Treasury yields retreated, while traders awaited key U.S. jobs data due later in the day for clues on when the Federal Reserve could start rate cuts.

Spot gold edged 0.1% higher to $2,056.00 per ounce by 0550 GMT. Bullion has climbed nearly 2% so far this week, set for its best weekly gain since early December.

U.S. gold futures edged 0.1% higher to $2,073.40.

"Fed is unlikely to cut rates in March, but market participants are sure that its going to start cutting rates after that ... the remarks were bullish for gold," Brian Lan at Singapore-based dealer GoldSilver Central said.

Lower interest rates boost non-yielding bullion's appeal.

Spot gold rose nearly 1% on Thursday after data from the U.S. Labor Department showed initial jobless claims rose more than expected last week.

A separate report showed that U.S. worker productivity grew faster than expected in the fourth quarter.

Investor focus will shift to U.S. non-farm payrolls data due at 1330 GMT.

Concerns over the regional banking sector in the U.S., increased the appeal for safe-haven assets such as bullion and Treasury bonds.

Yields on benchmark 10-year Treasury notes , which are inversely related to bond prices, languished near their lowest levels seen in 2024.

The dollar index has dropped more than 0.4% so far this week.

Fed Chair Jerome Powell pushed back on the idea of an interest rate cut in the spring, but expressed confidence in inflation moving towards the desired 2% range.

Money market pricing shows traders are nothing but sure about a rate cut in May. FEDWATCH

Spot silver rose 0.1% to $23.19 per ounce, platinum was steady at $912.98, while palladium climbed 0.7% to $969.32.

Reporting by Daksh Grover and Harshit Verma in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich

Source: Reuters

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