Gold set for worst week in more than two months; US jobs data eyed

GOLD prices were poised for their worst weekly performance in more than two months on Friday as receding trade tensions tempered safe-haven demand, while the market’s focus shifted to the US non-farm payrolls report, due later in the day.

Spot gold was steady at US$3,239.15 an ounce as of 0206 GMT.

Gold has lost more than 2 per cent so far this week, the steepest weekly fall since late February.

US gold futures rose 0.8 per cent to US$3,247.90.

“Prices are taking a breather, and I mean the bears now are taking charge. And well, because of that, we’ve seen retail buying,” said Singapore-based dealer GoldSilver Central managing director Brian Lan.

The United States has approached China to seek talks over President Donald Trump’s 145 per cent tariffs and Beijing’s door is open for discussions, China’s Commerce Ministry said on Friday, signalling a potential de-escalation in the trade war.

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Tariffs are easing, both US and China are more willing to listen and take a step back, which is weighing on gold prices, GoldSilver Central’s Lan said.

Bullion, a safeguard against political and financial turmoil, last soared to a record high of US$3,500.05 per ounce on April 22 as investors sought refuge from global economic turmoil.

Meanwhile, US manufacturing contracted for a second straight month in April as tariffs on imported goods strained supply chains, keeping prices at the factory gate elevated and encouraging some firms to lay off workers.

The market now awaits US non-farm payrolls report due at 1230 GMT for more cues on the Federal Reserve’s policy path.

Non-farm payrolls likely increased by 130,000 jobs in April after rising by 228,000 in March, a Reuters survey showed. The unemployment rate is estimated to remain unchanged at 4.2 per cent.

Chinese markets are closed for the Labour Day holiday from May 1-5 and will resume trade on Tuesday, May 6.

Spot silver rose 0.5 per cent to US$32.57 an ounce, platinum firmed 0.8 per cent to US$966.59 and palladium gained 0.9 per cent to US$948.74. REUTERS