Gold at near two-week high ahead of US jobs data

• Gold up more than 1% so far this week
• US nonfarm payrolls due at 1230 GMT
• Payrolls forecast to fall 22 million in April

Gold hit a near two-week high on Friday as investors awaited US nonfarm payrolls data for pointers on the US economy after a batch of weak economic indicators boosted hopes of more stimulus from the Federal Reserve.

Spot gold was steady at $1,717.52 per ounce by 1202 GMT after hitting its highest since April 27 at $1,722.56. Bullion has risen more than 1% so far this week.

US gold futures rose 0.1% to $1,727.70.

"Gold market is steady ahead of nonfarm payroll report today. Overall, initial jobless claims data and the ADP employment numbers disappointed the market and gold prices spiked," said Jigar Trivedi, commodities analyst at Anand Rathi Shares and Stock Brokers in Mumbai.

"Also, there are expectations of negative interest rates from the US Federal Reserve and another round of stimulus measures supporting gold prices."

Gold jumped as much as 2.1% last session after poor economic readings out of the United States intensified concerns about global economic growth amid tensions between China and US over the coronavirus crisis.

Millions more Americans sought unemployment benefits last week, with the total number of people who have filed claims since March 21 rising to about 33.5 million.

US nonfarm payrolls data, due at 1230 GMT, are expected to show the US economy lost 22 million jobs in April and that the unemployment rate jumped to 16% as people stayed home to halt the spread of the coronavirus.

Federal funds futures priced in negative US interest rates for the first time on Thursday, while the Bank of England kept the door open for more stimulus next month.

Lower US interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.

The dollar index fell 0.2%, while US Treasury yields slipped from three-week highs, with the two-year yields dropping to record lows.

"Gold seems like it is ready to run higher as disastrous economic data will likely only lead to further global monetary easing," Edward Moya, a senior market analyst at broker OANDA, said in a note.

Central banks around the world have cut interest rates, unveiled unprecedented amounts of stimulus to limit economic damage caused by the coronavirus, which has infected more than 3.86 million people globally.

Palladium climbed 0.8% to $1,870.84 per ounce and platinum gained 0.1% to $764.17, while silver eased 0.1% to $15.49.