Gold Fights for Stability as US Jobs Report Looms
Gold prices steadied near $4,477 an ounce on Friday, holding most of Thursday's sharp rebound as investors awaited the US payrolls data that could reshape expectations for the Federal Reserve's September meeting.
The spot bullion was little changed at $4,477.10 an ounce in early Asian trading and was heading for a modest weekly gain. December US gold futures slipped 0.4% to $4,522.60.
The metal jumped about 2% on Thursday after Fed Governor Christopher Waller signalled he could support keeping rates unchanged if incoming inflation data continued to show progress.
Friday's jobs report is the immediate test for bullion because the market has become unusually sensitive to small shifts in rate expectations. Economists expect nonfarm payrolls to rise by around 56,000 in August, while unemployment is forecast to remain at 4.1%.
A weaker-than-expected payrolls report could therefore support gold by reducing the likelihood of another rate increase. Central-bank demand keeps support under gold as central banks bought a net 289 tonnes in the second quarter, up 62% from a year earlier and the strongest second-quarter total on record.