Gold edges up, holds tight range ahead of U.S. data

• Spot gold was up 0.2pc at $1,616 per ounce by 1205 GMT.
• Safe-haven gains for the U.S. dollar limited gold's advance, with the dollar index edging towards a 2pc weekly rise as global recession fears intensify.
• Palladium slipped 1.5pc to $2,179.56 an ounce on Friday, while platinum dipped 0.7pc to $722.58. Both metals were set to register a weekly loss.

Gold prices inched higher on Friday and were stuck in a narrow range as the dollar strengthened ahead of U.S. nonfarm payrolls data that could provide further clarity on the economic damage from the coronavirus.

Spot gold was up 0.2pc at $1,616 per ounce by 1205 GMT.

The metal has declined nearly 0.5pc so far this week after an 8pc jump in the previous week.

U.S. gold futures edged 0.1pc higher to $1,639.40 per ounce.

"The U.S. dollar is moderately stronger and that's weighing on the gold prices," said Bank of China International analyst Xiao Fu.

"It's still a tug-of-war situation for gold between the virus and the equity markets; when equity markets further sell off, there is request for margin calls again. So it's very unclear if there will be an upward trend, and gold is expected to be range-bound in the near-term."

Safe-haven gains for the U.S. dollar limited gold's advance, with the dollar index edging towards a 2pc weekly rise as global recession fears intensify.

Focus now shifts to the U.S. nonfarm payrolls report due at 1230 GMT. Economists are forecasting job losses of 100,000 for last month, a sharp reversal from gains of 273,000 in February, according to a Reuters poll.

On Thursday, gold gained 1.2pc after the number of Americans filing claims for unemployment benefits last week shot to another record high as more jurisdictions enforced stay-at-home measures to curb the pandemic.

Global coronavirus cases surpassed 1 million on Thursday, with more than 53,000 deaths as the outbreak spread further in the United States and the death toll climbed in Spain and Italy, according to a Reuters tally of official data.

"Even after the health crisis has peaked, the economic ramifications are set to continue to be a drag on risk assets, with emerging markets being particularly vulnerable," FXTM analysts said in a note.

Palladium slipped 1.5pc to $2,179.56 an ounce on Friday, while platinum dipped 0.7pc to $722.58. Both metals were set to register a weekly loss.

Silver shed 0.7pc to $14.43 per ounce.

European stock markets fell as more companies flagged a hit to business from the virus, foreshadowing a deeper earnings recession ahead of the reporting season.

Reflecting investors interest in bullion, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.3pc to 971.97 tonnes on Thursday.