Gold Prices Steady as Markets Await U.S. Jobs Data

Gold prices were largely unchanged on Friday as investors awaited key U.S. employment data for fresh signals on the Federal Reserve’s interest-rate outlook, while a strong dollar and elevated Treasury yields kept pressure on bullion.

Spot gold edged 0.1% higher to $4,182.45 an ounce by 04:53 GMT, while U.S. gold futures gained 0.2% to $4,212.05. Despite the modest advance, gold was heading for its second consecutive weekly decline, falling more than 2% so far this week.

The U.S. Dollar Index slipped 0.2% but remained close to the 17-month high reached on Thursday. The index was set for a weekly gain of about 1%, with dollar strength making gold more expensive for buyers using other currencies.

Treasury yields also remained a headwind. The benchmark U.S. 10-year yield briefly surged to 5.344% on Thursday, its highest level since 2002, before easing toward 5.25% on Friday. Higher yields typically reduce demand for non-interest-bearing assets such as gold.

Investor attention is now centered on the September U.S. nonfarm payrolls report. Economists expect the economy to have added nearly 90,000 jobs, down from 162,000 in August, while unemployment is forecast to remain at 4.1%.

The Federal Reserve raised its benchmark interest rate by 25 basis points last month to 3.75%-4.00%, marking its first increase in three years. However, softer inflation data has reduced expectations for another October hike. Markets now see roughly a 28% probability of an increase, compared with 69% a week earlier.

Gold received some support from easing rate expectations and safe-haven demand linked to escalating Middle East tensions. Still, rising oil prices and bond yields have raised concerns that inflationary pressures could persist.

Elsewhere, silver gained 0.4% to $61.247 an ounce, while platinum climbed 0.8% to $1,740.60. London copper futures rose 0.6% to $14,353.33 a ton, and U.S. copper futures advanced 0.7% to $5.59 a pound.