Gold futures prices eased for its biggest weekly gain in nine months on Friday but investors focused on U.S. jobs data later in the day.
The report on NFP of the United States is deeply watched as an indicator of economic strength and its impact on the dollar and the monetary policy of the Federal Reserve.
A strong report might lead the Fed to raise rates soon and boost the dollar. Investors fear that higher interest rates may obscure the appeal of gold, an active non-interest bearing asset.
On the Comex, gold futures in New York for February delivery were trading at $ 1,205.20 a troy ounce, down 0.06%, after hitting a session low overnight of $ 1201.50 and below a maximum of $ 1213.50.
Spot gold was down 0.2 percent to $ 1,202.60 an ounce by 0354 GMT. The metal was set for a gain of 3 percent for the week – its biggest gain since March.
Gold and the dollar tend to trade vice versa with one another, but an optimistic report on jobless claims states provide gold’s gains in jeopardy, sending precious metals sometimes negative territory.
It is expects the report to show that employers added 230,000 new jobs last month and the jobless rate remains unchanged at 5.8 percent, according to a Reuters poll.
“Comex gold and silver have come under pressure on U.S. jobs data later in the day. In the domestic market, with a fall of 0.3 per cent on MCX gold is trading below Rs 26,550.” 100McxTips Analysts said.
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