BENGALURU: Gold prices jumped more than 1% on Friday and were headed for a weekly gain, as the dollar eased, while investors looked forward to US jobs report later in the day that could shed more light on Federal Reserve’s rate-hike path.
Spot gold rose 1.2% to $1,648.77 per ounce by 0906 GMT, and was up 0.4% for the week so far. US gold futures gained 1.3% to $1,651.40.
The dollar index fell 0.3%, making gold more appealing for other currency holders. “Investors are still digesting Fed’s comments and today there is some more optimism, markets are trying to focus the attention also on dovish remarks, while uncertainty is still dominant,” said Carlo Alberto De Casa, external analyst for Kinesis Money.
The US central bank raised interest rates by 75 basis points for the fourth time in a row this week, but also signalled it may be nearing an inflection point in what has become the fastest tightening of monetary policy in 40 years. Data on Thursday showed number of Americans filing new claims for unemployment benefits unexpectedly fell last week. All eyes are now on US non-farm payrolls data for October due at 1230 GMT.
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