NEW YORK: Gold on Friday rose above the important psychological level of $1,700 as the dollar paused while investors awaited a key US jobs data amid expectations of aggressive Federal Reserve policy continuing over the coming months.
Spot gold rose 0.5% to $1,704.90 per ounce by 0926 GMT. The metal was down about 2% for the week so far, having touched a six-week low of $1,687.60 on Thursday. US gold futures were up 0.4% at $1,716.30.
The dollar index dipped 0.3% but was not far from a 20-year peak scaled in the previous session.
After a host of recent economic data out of the United States confirmed that its economy was not headed into recession, investors now wait for the non-farm payrolls report for August at 1230 GMT.
Expectations are for 300,000 jobs added last month, and a higher number could further boost the US dollar and dent demand for gold, given their inverted correlation.
For now, “the market is still really playing on a higher-for-longer US interest rate narrative,” said Stephen Innes, managing partner at SPI Asset Management.
Higher interest rates increase the opportunity cost of holding the non-yielding bullion. Spot silver gained 0.6% to $17.9473 per ounce, platinum rose 0.5% to $832.87, and palladium added 2.1% to $2,053.98.
They were also headed for a third consecutive weekly fall.
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