Gold fell in an early Friday snapshot but remained up 5% week to date, putting it on pace for its strongest week in more than two months as investors watched jobs data and Fed policy.
Reuters’ update by 4:28 a.m. ET (0928 GMT) put spot gold at $4,076.91 an ounce, down 0.3% for the session. December U.S. gold futures were 0.6% lower at $4,088. If the weekly advance held through Friday’s close, gold would record its largest weekly gain in more than two months, Reuters reported.
That price check came before the U.S. Bureau of Labor Statistics (BLS) was scheduled to release its October Employment Situation report at 8:30 a.m. ET (13:30 UTC). The report covers payrolls, unemployment and earnings. The U.S. Department of Labor (DOL) said initial unemployment claims fell by 6,000 to 189,000 in the week ended Oct. 31. The BLS put September’s unemployment rate at 4.2%.
Federal Reserve Bank of Cleveland President Beth Hammack said Thursday that restraining inflation may require moving policy into restrictive territory. She favored smaller changes made more often when possible. Reuters said Richmond Fed President Thomas Barkin also supported a gradual pace of rate increases.
The Federal Reserve held its target rate range at 3.75% to 4.00% on Oct. 28. Hammack and Federal Reserve Governor Lisa Cook dissented in favor of a quarter-point increase. The Fed’s next meeting is scheduled for Dec. 8-9. Reuters said higher rates can make gold less attractive by increasing the opportunity cost of holding an asset that pays no interest.
