NEW YORK: Gold gained on Friday, supported by growing bets on a US interest rate cut, with markets focused on upcoming US inflation data ahead of the Federal Reserve’s policy meeting next week.
Spot gold rose 0.5percent to USD4,226.99 per ounce, as of 1208 GMT, but was on track for a 0.1percent weekly decline. US gold futures for February delivery edged 0.3percent higher to USD4,257.40 per ounce.
“Gold remains somewhat buoyed by market bets that the Fed will cut rates next week,” said Lukman Otunuga, senior research analyst at FXTM.
Data on Wednesday showed that private payrolls fell by 32,000 in November, the sharpest drop in more than 2-1/2 years. A majority of more than 100 economists polled by Reuters forecast the Fed will reduce its key interest rate by 25 basis points at its December 9-10 meeting.
Lower interest rates tend to favour non-yielding assets such as gold. Investors are eyeing the delayed September PCE inflation data due later today, which will mark the final data release before next week’s FOMC meeting.
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