Gold prices on Friday were on track for a fourth consecutive weekly loss as recent US jobs data and hawkish comments from Federal Reserve policymakers strengthened bets for higher-for-longer interest rates, weighing on non-yielding bullion.

Spot gold held steady at $1,912.39 per ounce by 0505 GMT, but down 0.3% for the week. US gold futures ticked up 0.1% to $1,918.00.

US private payrolls figures indicate strength in the labour market despite growing risks of a recession from higher interest rates, with investors now bracing for the June non-farm payrolls data for further cues on the Fed’s policy trajectory.

Gold holds steady as markets focus on US Fed minutes

“A resilient and tight US jobs market effectively strengthens the case for the Fed to keep pushing the benchmark interest rate higher. Right now, it’s all about interest rates and a guessing game about where the terminal rate setting will land,” said Tim Waterer, chief market analyst at KCM Trade.

“With US yields at these high levels, gold is facing a struggle to try and stay above the $1,900 level in the short term,” Waterer added.

Meanwhile, Fed Bank of Dallas President Lorie Logan said there was a case for a rate rise at the June policy meeting, in comments that affirmed her view that more rate increases will be needed.

Market participants also kept a close watch on US Treasury Secretary Janet Yellen’s Beijing visit amid tensions over China’s curbs on gallium and germanium exports.

“Any possible ratcheting up of trade tensions between the world’s two biggest economies has the potential to sour market sentiment… (and) could see gold receive some safe-haven buying demand,” Waterer said.

Spot silver fell 0.2% to $22.7009 per ounce, platinum held steady at $902.40.

BofA Global Research cut 2023 price forecast for gold and other precious metals, adding that silver could outperform as the global economy bottoms out and in 2024.

Palladium rose 0.2% to $1,244.18, but headed for a 1.3% weekly gain.