By Anjana Anil
(Reuters) – Gold was little changed on Friday as gains from a softer U.S. dollar following weak job growth data from the world’s biggest economy and upside momentum from safe-haven demand were offset by rising Treasury yields.
Spot gold was flat at $2,745.64 per ounce by 12:04 p.m. ET (1604 GMT). Prices fell 1.5% on Thursday as some traders took profit after bullion hit a record high of $2,790.15.
U.S. gold futures rose 0.2% to $2,755.60.
Nonfarm payrolls increased by 12,000 jobs last month, the smallest gain since December 2020, affected by disruptions from hurricanes and strikes by aerospace factory workers.
After the report, the dollar erased earlier gains to trade lower. [USD/]
Benchmark 10-year U.S. Treasury yields rebounded from an earlier drop, making non-yielding gold less appealing. [US/]
“There’s too much risk on the table, and the terrible jobs report should bring a rate cut here by the Fed,” said Bob Haberkorn, senior market strategist at RJO Futures.
Economists see a 98% chance of a 25 basis point cut by the Federal Reserve next week.
“We could pull back a little but I think (prices) will stay elevated going into the weekend ahead of the U.S. election and also with talks of an Iranian retaliatory strike on Israel,” Haberkorn said.
Opinion polls indicate a close race between Donald Trump and Kamala Harris in the Nov. 5 U.S. presidential election.
Gold prices are typically influenced by the dollar and real yields. However, current high market interest in gold is partly driven by the upcoming elections, anticipated Fed rate cuts, and broader economic and geopolitical uncertainties, Standard Chartered said in a note.
High gold prices, however, continue to affect physical demand in major Asian regions. Gold consumption in China fell 11% in the first nine months of 2024. [GOL/AS]
Among other metals, spot silver was up 0.1% at $32.69 per ounce. Platinum gained 1.2% to $999.80, while palladium added 0.6% to $1,112.25.
(Reporting by Anjana Anil in Bengaluru; Editing by Shilpi Majumdar and Tasim Zahid)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.