While investors awaited U.S. jobs data to see how aggressively the Federal Reserve may cut interest rates this year, gold prices held steady on Friday during early Asian hours, setting up for their strongest week since mid-November.
Spot gold remained steady at $2,670.16 per ounce. This week, the price of gold has increased by almost 1%. At $2,694.50, gold futures increased by 0.1%.
The important government payrolls report, which is set to be released at 8:30 a.m. ET, will be eagerly watched by investors. A Reuters survey predicts that non-farm payrolls will have grown by 160,000 jobs in December after increasing by 227,000 in November.
As investors considered the potential effects of U.S. President-elect Donald Trump’s policies on inflation and the economy, the bullion surged to a nearly four-week high during the previous session.
Trump is predicted to increase inflation with his projected protectionist policies and tariffs when he returns to office on January 20.
As the U.S. central bank enters the new year dealing with a robust economy and inflation that is still above its 2% objective, Kansas City Federal Reserve President Jeff Schmid indicated on Thursday that he would be reluctant to lower interest rates once more.
Although increased interest rates make owning non-yielding gold less alluring, bullion is used as a hedge against inflation.
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