Gold prices were poised for their biggest weekly gain in seven on Friday as the dollar and Treasury yields retreated, while traders awaited key U.S. jobs data due later in the day to gauge when the Federal Reserve might commence interest rate cuts.

Spot gold was steady at $2,053.89 per ounce by 0335 GMT. Bullion has climbed 1.8% this week, set for its best weekly gain since late December.

U.S. gold futures were flat at $2,071.10.

“Fed is unlikely to cut rates in March, but market participants are sure that its going to start cutting rates after that… the remarks were bullish for gold,” Brian Lan at Singapore-based dealer GoldSilver Central said.

Lower interest rates boost non-yielding bullion’s appeal.

Gold, silver rates on 1-February-2024

Spot gold rose nearly 1% on Thursday after data from the U.S. Labor Department showed initial jobless claims rose more than expected last week.

A separate report showed that U.S. worker productivity grew faster than expected in the fourth quarter.

Investor focus will shift to U.S. non-farm payrolls data due at 1330 GMT.

Concerns over the regional banking sector in the U.S., increased the appeal for safe-haven assets such as bullion and Treasury bonds.

Yields on benchmark 10-year Treasury notes, which are inversely related to bond prices, languished near their lowest levels seen in 2024.

The dollar index fell 0.4% so far this week.

Fed Chair Jerome Powell pushed back on the idea of an interest rate cut in the spring, but expressed confidence in inflation moving towards the desired 2% range.

Money market pricing shows traders are nothing but sure about a rate cut in May.

Spot silver fell 0.2% to $23.13 per ounce, platinum shed 0.2% to $911.24, while palladium rose 0.4% to $966.42.