Gold Seeks Second Weekly Gain

Prices for gold edged up on Friday and were set for a second straight weekly gain, while traders awaited U.S. employment data to gauge the trajectory of the Federal Reserve’s potential interest rate cuts.

Spot gold rose 0.2% at $2,359.73 per ounce, as of late Thursday night and was up more than 1% for the week. U.S. gold futures was down 0.1% to $2,366.10 U.S.

The U.S. dollar was on track for a weekly decline, making dollar priced-bullion more attractive to buyers holding other currencies.

Economic data on Wednesday, including weak services and ADP employment reports, pointed to a slowing U.S. economy. A separate report showed an increase in initial applications for U.S. unemployment benefits last week.

Market spotlight is on the U.S. nonfarm payrolls report due at 8:30 a.m. EDT Friday.

Traders are currently pricing in about a 73% chance of a Fed rate cut in September.

Lower interest rates reduce the opportunity cost of holding non-yielding gold.

In other metals, spot silver rose 0.4% to $30.53 U.S. and was headed for its best week since May 17.

Platinum fell 0.3% to $999.86 U.S.. Palladium gained 0.4% to $1,021.75 U.S. and headed for a third consecutive weekly gain.

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