Gold treads water ahead of US jobs data
Gold held steady on Friday, after dipping 0.3 per cent in the prior session on a firm dollar, as investors waited for the release of key US non-farm payroll data later in the day. Spot gold was flat at $1,251.06 per ounce by 0052 GMT.
US gold futures were also little changed at $1,252.90. Spot gold was set for its fourth straight week of gains, on track for a weekly rise of less than half a per cent. Gold was pressured on Thursday as new applications for US unemployment benefits last week recorded their biggest drop in nearly two years. The dollar index, which measures the greenback against a basket of currencies, was up 0.1 per cent at 100.730.
Investors will watch out for March US non-farm payrolls data on Friday, which analysts say could be key for the short-term direction of the gold market. According to a Reuters survey of economists, non-farm payrolls likely increased by 180,000 jobs last month after rising 235,000 in February.
Strong job gains will likely add upward pressure on wages, supporting higher interest rates. Investors were also anxious over Friday's meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, who met face-to-face for the first time on Thursday.
It would make sense if the US economy continues to grow for the Federal Reserve to begin trimming its $4.5 trillion balance sheet towards the end of this year, unwinding extraordinary stimulus deployed during the crisis, John Williams, president of the San Francisco Federal Reserve Bank said. The Fed's decision to reduce its massive asset holdings will set off a complex dance with global investors and the US Treasury as it tries to put a final end to policies used to fight the 2007 financial crisis without upending the economy along the way.
British workers are becoming more reticent about moving jobs as the process of leaving the European Union gets underway, exacerbating long-standing skill shortages, a survey of recruiters showed on Friday.
DATA AHEAD (GMT)
0600 Germany Industrial output Feb
0600 Germany Trade data Feb
0645 France Industrial output Feb
0645 France Trade data Feb
0800 China Forex reserves Mar
0830 Britain Industrial output Feb
1230 US Nonfarm payrolls Mar
1230 US Unemployment rate Mar
1400 US Wholesale sales Feb
US gold futures were also little changed at $1,252.90. Spot gold was set for its fourth straight week of gains, on track for a weekly rise of less than half a per cent. Gold was pressured on Thursday as new applications for US unemployment benefits last week recorded their biggest drop in nearly two years. The dollar index, which measures the greenback against a basket of currencies, was up 0.1 per cent at 100.730.
Investors will watch out for March US non-farm payrolls data on Friday, which analysts say could be key for the short-term direction of the gold market. According to a Reuters survey of economists, non-farm payrolls likely increased by 180,000 jobs last month after rising 235,000 in February.
Strong job gains will likely add upward pressure on wages, supporting higher interest rates. Investors were also anxious over Friday's meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, who met face-to-face for the first time on Thursday.
It would make sense if the US economy continues to grow for the Federal Reserve to begin trimming its $4.5 trillion balance sheet towards the end of this year, unwinding extraordinary stimulus deployed during the crisis, John Williams, president of the San Francisco Federal Reserve Bank said. The Fed's decision to reduce its massive asset holdings will set off a complex dance with global investors and the US Treasury as it tries to put a final end to policies used to fight the 2007 financial crisis without upending the economy along the way.
British workers are becoming more reticent about moving jobs as the process of leaving the European Union gets underway, exacerbating long-standing skill shortages, a survey of recruiters showed on Friday.
DATA AHEAD (GMT)
0600 Germany Industrial output Feb
0600 Germany Trade data Feb
0645 France Industrial output Feb
0645 France Trade data Feb
0800 China Forex reserves Mar
0830 Britain Industrial output Feb
1230 US Nonfarm payrolls Mar
1230 US Unemployment rate Mar
1400 US Wholesale sales Feb
