Gold Set for Largest Weekly Gain Since March as Jobs Data Loom




  • In Business
  • 2022-10-07 01:52:35Z
  • By Bloomberg

(Bloomberg) -- Gold headed for the largest weekly gain since March ahead of key US jobs data that will shape expectations about how much more tightening is yet to come from the Federal Reserve.

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The precious metal surged past the $1,700 mark earlier this week, after disappointing US data on a manufacturing gauge and job openings fueled expectations that the Fed may halt aggressive monetary tightening. While it dipped later as new US statistics had traders assessing whether the US central bank would maintain its hawkish stance, it remains on track for a weekly gain of about 3%.

Following figures on Wednesday that showed firm growth of US service providers, fresh US data on Thursday -- which showed weekly initial jobless claims rising more than forecast -- did little to bolster sentiment for gold. The greenback rose after the release, hurting bullion which is priced in the US dollar.

The latest hawkish comments from Fed officials committed to crushing inflation with rate hikes also strengthened the greenback and Treasury yields.

US nonfarm payrolls data due later Friday may prove key by offering clues on the likely tightening trajectory. The labor market currently shows a mixed picture, with some signs of moderation while still remaining robust.

Spot gold was little changed at $1,709.87 an ounce as of 9:23 a.m. in Singapore, after slipping 0.2% in the previous session. The Bloomberg Dollar Spot Index was also steady, following Thursday's 0.7% gain. Silver, platinum and palladium edged down.

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