NEW YORK: Gold inched lower on Friday but was on track for a modest weekly gain as investors scaled back bets on a September interest rate hike ahead of US non-farm payrolls data that could shed further light on the Federal Reserve’s policy path.
Spot gold fell 0.1percent to USD4,467.30 per ounce by 1137 GMT, while US gold futures for
December delivery dropped 0.6percent to USD4,513.70 per ounce.
However, bullion was on track for a small weekly rise having rebounded from a three-week low hit on Wednesday, with prices getting a further boost from Fed Governor Christopher Waller’s comments.
Traders scaled back bets for a September rate hike after Waller said he was leaning toward keeping interest rates steady at the central bank’s policy meeting this month if upcoming inflation data shows moderating price pressures.
“The news that Governor Waller was leaning towards no increase gave gold something of a steroid shot, with the metal gaining around 2percent. But the effect is likely to prove short-lived as fresh data takes precedence,” independent analyst Ross Norman said.
“There is a sense of refreshed optimism among gold investors just now, almost as if the market is looking for excuses to move higher,” Norman said.
The US nonfarm payrolls report is due at 1230 GMT, followed by the August CPI and PPI inflation reports next week.
Although gold is typically seen as an inflation hedge, higher interest rates tend to diminish non-yielding bullion’s appeal.
Citi said it remains bullish on precious metals, with its 0–3-month point price target for gold at USD4,800 per ounce and 6–12-month forecast of USD5,000. “Momentum in gold prices will likely attract retail buying similar to the second half of 2025, both physical and futures globally,” Citi said in a note.
Gold demand in India improved this week as a drop in prices spurred some buying interest, while investment flows continued to support consumption in top consumer China.
Among other metals, spot silver fell 0.3percentto USD66.76 per ounce, platinum slipped 1.2percent to USD1,803.99 per ounce, and palladium dropped 1.1percent to USD1,405.53.
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