Gold Prices Edge Higher Ahead of US Payrolls Data

SEATTLE (Scrap Monster):  Gold prices ticked up on Friday and headed for a slight weekly gain, while investors braced for the U.S. payrolls data that could provide further clues about the Federal Reserve's interest rate outlook.

Spot gold rose 0.4% to $2,753.75 per ounce, as of 0540 GMT and up 0.2% for the week so far. Prices ended lower on Thursday after hitting a record high of $2,790.15.

U.S. gold futures rose 0.5% to $2,763.60.

 "Investors are still in the mindset of buying the dips and that strategy is still going to hold through the (U.S.) election, and maybe after that because there is going to be a lot of turmoil," said Marex analyst Edward Meir.

Democratic Vice President Kamala Harris held a marginal 46% to 43% lead over Republican former President Donald Trump, with a glum electorate saying the country is on the wrong track, a new Reuters/Ipsos poll found.

 Gold prices gained more than 4% in October amid safe-haven flows spurred by the Middle East tensions and U.S. election uncertainty.

Market focus is now on the U.S. nonfarm payrolls report, due at 1230 GMT, for clues about the health of the world's largest economy.

Traders see a 95% chance of a 25-basis-point Fed rate cut next week.

"With no signs of recession and inflation declining, the economy looks positive... the key now is how quickly the Fed will lower rates," Meir said.

 Zero-yield gold thrives in a low interest rate environment.

Data on Thursday showed that U.S. labour costs recorded their smallest increase in more than three years in the third quarter, while the number of Americans filing new applications for unemployment benefits fell to a five-month low last week.

Among other metals, spot silver rose 0.3% to $32.75 per ounce and platinum was nearly unchanged at $988.08. Both metals were on track of weekly rise.

Palladium gained 0.2% to $1,108.36, after hitting a more than one-week low earlier in the session.

Courtesy: www.reuters.com