Gold prices nudged higher on Friday, poised for a second consecutive weekly win. Investors are anxiously awaiting the release of U.S. employment data, hoping it will provide clues about the Federal Reserve’s plans for interest rates.
- Price Increase: Spot gold gained 0.2% to $2,359.73 per ounce, on track for a weekly increase of over 1%. U.S. gold futures dipped slightly but remained near $2,366.
- Dollar Decline: A weakening U.S. dollar is boosting gold’s appeal. Since gold is priced in dollars, a falling dollar makes it cheaper for buyers using other currencies.
- Focus on Payroll Data: Today’s key U.S. jobs report, the Nonfarm Payrolls release, is expected to significantly impact expectations for future interest rate cuts by the Fed.
- Speculation on Rate Cuts: A string of recent economic data has fueled speculation that the Fed will begin lowering rates as soon as September to stimulate growth.
Analysts believe a strong jobs report could dampen hopes for rate cuts and put downward pressure on gold prices. Conversely, a weak report could strengthen the case for rate cuts and potentially lift gold prices further.
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