Gold prices took a breather on Friday following a surge to historic highs in the previous session amid expectations of lower U.S. interest rates this year, with traders awaiting further signals from an important jobs report scheduled later in the day.
Key Points:
- Spot gold slipped by 0.2% to $2,284.84 per ounce, as of 0052 GMT, after reaching a record peak of $2,305.04 on Thursday. Despite the slight dip, bullion was still poised for its third consecutive weekly gain, up by 2.3% so far.
- U.S. gold futures also retreated by 0.2% to $2,303.80 per ounce.
- Federal Reserve Chair Jerome Powell reiterated that the central bank has the luxury of time to consider its first rate cut, given the robustness of the economy and recent spikes in inflation. Lower interest rates tend to decrease the opportunity cost of holding gold.
- Data revealed that the number of Americans filing new claims for unemployment benefits rose more than anticipated last week, suggesting gradual easing in labor market conditions.
- Investor attention is now focused on the U.S. March non-farm payrolls data, scheduled for release at 1230 GMT, which could provide further insights into the timing of the Fed’s initial rate cut.
- Meanwhile, Canada reported a larger-than-expected trade surplus of C$1.39 billion ($1.03 billion) in February, driven by a record level of unwrought gold exports that outpaced the increase in imports.
- Perth Mint’s gold product sales in March dipped to their lowest level in almost five years, influenced by declining demand as customers responded to escalating prices.
- Spot silver declined by 1% to $26.69 per ounce, platinum edged up by 0.1% to $926.36, and palladium retreated by 0.7% to $1,013.67 per ounce.
