Investing.com — Gold prices moved little in Asian trading on Friday as markets remained off the yellow metal ahead of key U.S. payroll data, while the prospect of high longer-term interest rates put gold on course for weekly losses.
The yellow metal saw a sharp decline from the record highs of the past two weeks as safe-haven demand dried up and US yield pressures came back into play.
remained stable at $2,302.72 per ounce, while the June expiration rose slightly to $2,311.45 per ounce at 00:21 ET (04:21 GMT).
The yellow metal saw some price reduction as the dollar tumbled in overnight trading. But this only served to limit recent gold losses.
Gold fell about 1% this week, non-farm payrolls were expected
Spot prices fell about 1% this week – their second week in a row in the red. The bullion losses came as the outlook for prices was clouded by the prospect of US interest rates remaining high for longer.
The figures, which will be released later on Friday, are expected to play a further role in the interest rate outlook. Any continued sign of strength in the labor market gives the Fed more leeway to keep rates high for longer.
The central bank recently warned that this was likely to remain the case in the short term, with persistent inflation also giving the Fed little reason to cut rates. But the Fed also indicated that it had no intention of raising rates further.
Still, the prospect of high interest rates does not bode well for gold, as it increases the opportunity cost of investing in the yellow metal. As geopolitical tensions in the Middle East eased, safe-haven demand for gold dried up, leaving the yellow metal vulnerable to interest rate swings.
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Other precious metals were somewhat mixed this week. rose slightly on Friday and were in the red for a second week. But they expected a rebound of almost 6% this week after recovering from a three-week low.
Copper prices are heading for weekly losses after a five-week rally
Among industrial metals, copper prices were flat on Friday, heading for mild weekly losses as fears about US yields led to some profit taking. But prices were still within sight of recent two-year highs.
on the London Metal Exchange rose 0.2% to $9,827.0 per tonne, while falling slightly to $4.5012 per pound.
The two contracts are expected to lose between 1% and 1.5% this week, after rising for five consecutive weeks, on expectations of tighter supply.
