Gold set for weekly gain, traders eye U.S. jobs data

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Gold prices were little changed on Friday as cautious investors positioned themselves for key U.S. jobs data, but the safe-haven bullion was still bound for a third straight weekly gain.

* Spot gold held its ground at $1,833.36 per ounce, as of 0035 GMT. For the week so far, it is up about 0.5%.

* U.S. gold futures inched 0.2% lower at $1,837.40.

* The market’s focus shifts to the U.S. Labor Department’s closely watched nonfarm payrolls (NFP) data due at 1330 GMT.

* U.S. private payrolls increased more than expected in December while number of Americans filing new claims for jobless benefits dropped to a three-month low last week, pointing to a still-tight labour market that could force the Fed to keep hiking interest rates.

* Few Fed officials on Thursday reiterated their fight to lower inflation back to its 2% target, but St. Louis leader James Bullard said 2023 could finally bring some welcome relief on the inflation front.

* Bullion is seen as a hedge against inflation, but rising interest rates tend to weigh on non-yielding gold.
* The European Central Bank interest rates should reach a peak by this summer and hikes should not be “too mechanical”, French ECB policymaker Francois Villeroy de Galhau said on Thursday.

* Spot silver held steady at $23.22, while platinum lost 0.2% to $1,056.16 and palladium fell 0.4% to $1,737.59.

DATA/EVENTS (GMT) 0030 Japan JibunBK Comp Op Final SA Dec 0030 Japan JibunBK SVC PMI Final SA Dec 0700 Germany Industrial Orders MM Nov 0700 Germany Manufacturing O/P Cur Price SA Nov 0700 Germany Consumer Goods SA Nov 0700 UK Halifax House Prices MM, YY Dec 0745 France Reserve Assets Total Dec 0930 UK All-Sector PMI Dec 1000 EU HICP Flash YY Dec 1000 EU HICP-X F, E, A&T Flash MM, YY Dec 1000 EU Consumer Confid. Final Dec 1330 US Non-Farm Payrolls Dec 1330 US Unemployment Rate Dec 1500 US Factory Orders MM Nov 1500 US ISM N-Mfg PMI Dec

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