Gold Retreats Ahead of US Jobs Data, Eyes Weekly Loss

Gold prices fell on Friday, on track to incur losses for a second consecutive week, under pressure from a rising US dollar and higher US Treasury yields, as investors awaited US jobs data for clues about the Federal Reserve’s monetary policy trajectory.

By 00:31 GMT, spot gold fell 0.4 percent to $4,161.58 per ounce, marking a decline of about 3 percent since the start of the week.

The dollar was heading toward weekly gains, making dollar-priced metals more expensive for holders of other currencies. Yields on 10-year and 30-year US Treasury bonds reached their highest levels since 2002 on Thursday.

The US non-farm payrolls report for September is scheduled for release at 12:30 GMT.

Two Federal Reserve policymakers expressed an unusually clear stance this week that more data are needed before deciding on another interest rate hike.

Data released on Wednesday showed that US inflation rose less than expected in August, with a downward revision to July’s Personal Consumption Expenditures (PCE) price index reading.

Traders now see only about a 25 percent probability of a rate hike this month, down from around 70 percent earlier in the week. They still expect a 79 percent chance of a rate increase in December.

Higher borrowing costs typically reduce gold’s appeal because it yields no return.

New claims for US unemployment benefits fell last week to levels near a 57-year low, and September layoffs declined, indicating continued stability in the labor market.

Among other precious metals, spot silver fell 0.2 percent to $60.71, platinum dropped 0.3 percent to $1,718.80, while palladium rose 0.6 percent to $1,177.80.