Gold Price Slips as US Dollar Strengthens Ahead of Key Jobs Data
Gold prices remained steady on Friday but were poised for a second straight weekly decline due to a stronger US dollar and higher Treasury yields. The metals market is closely watching key US payrolls data, which will provide clues about the Federal Reserve's policy path.
The spot price of gold was little changed at $4,184.45 per ounce by 0419 GMT, down more than 2% for the week so far. In contrast, US gold futures rose 0.3% to $4,214.70.
Kyle Rodda, senior financial market analyst at Capital.com, said market participants are watching US interest rate expectations and geopolitical developments in the Middle East. He added that US nonfarm payroll data will be critical for rate expectations, noting that a hot reading may increase the chances of rate hikes from the Fed, which would weigh further on gold prices.
The September US nonfarm payrolls report is due at 1230 GMT, and traders are pricing in only about a 28% chance of a rate hike this month, versus about 70% earlier in the week. They still see an 82% chance of a rate increase in December.