Gold prices edged up on Friday as the dollar eased after data showed that weekly U.S. jobless claims grew more than expected, spurring hopes that a softening labor market could pave the way for less-aggressive rate hikes from the Federal Reserve.
FUNDAMENTALS
* Spot gold was up 0.1% at $1,832.59 per ounce, as of 0103 GMT, after rising more than 1% in the previous session. U.S. gold futures rose 0.2% to $1,838.20.
* Bullion is on course to fall about 1.2% this week so far.
* The dollar index was down 0.1%, making bullion less expensive for buyers holding other currencies.
* Data on Thursday showed the number of Americans filing new claims for unemployment benefits last week increased by the most in five months, but the underlying trend remained consistent with a tight labor market.
* The U.S. Labor Department’s non-farm payrolls (NFP) data for February is due later in the day, and will be closely watched for cues on the Fed‘s monetary policy path. * The jobs report is expected to show non-farm payrolls increased by 205,000 in February, according to economists polled by Reuters.
* Markets are pricing in a peak in the Fed’s benchmark overnight interest rates at 5.475% in July.
* Although gold is considered a hedge against inflation, high interest rates to control rising prices tend to decrease the appetite for zero-yield bullion.
* Spot silver edged 0.1% higher to $20.09 per ounce, platinum was flat at $944.46 and palladium rose 0.1% to $1,390.37.