Gold prices on track for weekly gain; US data on tap
Gold prices remained stable on Friday during early Asian hours, poised for their strongest week since mid-November, as investors awaited U.S. jobs data to gauge how aggressively the Federal Reserve might cut interest rates this year.
FUNDAMENTALS
* Spot gold was unchanged at $2,670.16 per ounce, as of 0044 GMT. Bullion has gained more than 1% so far this week.
* U.S. gold futures edged 0.1% higher to $2,694.50.
* Investors will closely watch the key government payrolls report scheduled for release at 08:30 a.m. ET. According to a Reuters survey, non-farm payrolls are expected to have increased by 160,000 jobs in December, following a jump of 227,000 in November.
* The bullion strengthened to a nearly four-week high in the previous session, supported by safe-haven demand, while investors weighed how U.S. President-elect Donald Trump's policies would impact the economy and inflation.
* Trump will return to office on Jan. 20 and his proposed tariffs and
protectionist policies are expected to fuel inflation.
* Kansas City
Federal Reserve President Jeff Schmid signalled on Thursday a
reluctance to cut interest rates again as the U.S. central bank comes into the
new year facing a resilient economy and inflation that remains above its 2%
target.
* Bullion is used as a hedge against inflation, although higher interest rates
reduce the appeal of holding non-yielding bullion.
* Top consumer China's consumer inflation slowed in December, while producer
price deflation persisted, as Beijing ramped up policy support to bolster a
faltering economy.
* Spot silver shed 0.1% to $30.12 per ounce, platinum dropped 0.1% to $957.98
and palladium added nearly 1% to $934.28. All three metals were headed for a
weekly gain.