Gold prices were little changed on Friday, but the market is bracing for the precious metal to post a second straight weekly decline. According to Reuters, the main pressures remain a stronger dollar and elevated yields on US Treasury bonds.
As of 04:19 GMT, spot gold was nearly unchanged at $4 184,45 per ounce. The metal has fallen by more than 2% since the start of the week. US gold futures, meanwhile, rose 0.3% to $4 214,70 per ounce.
A firmer dollar makes dollar-denominated metals more expensive for holders of other currencies. Gold is also under pressure from high US government bond yields, which typically reduce the appeal of assets that do not generate interest income.
Capital.com senior financial markets analyst Kyle Rodda said investors are watching expectations for US interest rates as well as geopolitical developments in the Middle East. In his view, US non-farm payrolls data will be critical for assessing the Federal Reserve’s next policy moves.
Traders now see the probability of a Fed rate hike in October at about 28%, down from roughly 70% at the start of the week. The likelihood of a December increase is estimated at 82%. In other precious metals, spot silver rose 0.5% to $61,18 an ounce, platinum gained 0.6% to $1 734,44, and palladium added 0.9% to $1 181,93, though all three are also heading for weekly losses.
