Gold hits two-week high

BENGALURU: Gold prices climbed to a two-week high on Thursday as weaker-than-expected US jobs data fanned hopes of a Federal Reserve interest rate cut later this year with focus shifting to non-farm payrolls data due on Friday.

Spot gold was up 0.8% at $2,373.99 per ounce as of 1645 GMT. US gold futures rose 0.7% to $2,393.00. Data on Wednesday showed US private payrolls increased less than expected in May while data for the prior month was revised lower. “Yesterday’s weaker ADP jobs number gave the bulls a little bit of confidence that maybe tomorrow’s (payroll) report won’t be stronger than expected, and that’s going to be friendly for the gold and silver markets,” said Jim Wyckoff, senior analyst at Kitco Metals. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.