Gold prices are on track for their fourth consecutive weekly loss today, Friday, as data on U.S. jobs and comments supportive of tighter monetary policy from policymakers at the Federal Reserve have bolstered bets on higher interest rates for a longer period, impacting the non-yielding yellow metal. As of 02:40 GMT, gold remained stable in spot transactions at $1910.20 per ounce but has decreased by 0.5 percent for the week. U.S. gold futures stood at $1916.00, nearly unchanged.
An increase in the number of jobs in the U.S. private sector indicates strength in the labor market despite the rising risk of recession due to rate hikes. Investors are now awaiting data on non-farm payrolls for June for further indications on the path of monetary policy. Tim Waterer, the chief market analyst at KCM Trade, stated, "The strong U.S. job market supports the continued push by the Fed to raise the benchmark interest rate."
Waterer also noted that "any potential escalation of trade tensions between the world's two largest economies could harm market sentiment. Gold may see some demand from the appeal for safe-haven assets." Higher interest rates increase the opportunity cost of holding non-yielding gold. Market participants are also closely monitoring U.S. Treasury Secretary Janet Yellen's visit to Beijing.
As for other precious metals, silver fell 0.4 percent to $22.6567 per ounce, while platinum decreased by 0.3 percent to $898.83.
