By Ashita Shivaprasad
(Reuters) – Gold prices firmed on Friday, poised for their best week since April 5, after recent economic data boosted bets on a Federal Reserve rate cut.
rose 0.2% to $2,350.87 an ounce by 0212 GMT, after earlier hitting a more than two-week high. Prices are up 2.2% so far this week.
The US rose 0.7% to $2,356.90.
Data on Thursday showed that the number of Americans filing new claims for unemployment benefits rose more than expected last week.
“Gold has regained momentum this week on some softer US macro data. Initial unemployment benefits numbers were worse than expected, coming on the heels of last Friday’s weaker NFP (nonfarm payrolls) numbers, which indicate the labor market may be in trouble. starting to loosen up a bit,” said Tim Waterer, chief market analyst at KCM Trade.
Traders expect the Fed to start its easing cycle in September. Lower interest rates reduce the opportunity cost of holding gold.
The inflation reports have the potential to “move the needle on the expected timeline for rate cuts.” If inflation turns out to be lower, gold could benefit, Waterer added.
The US producer price indices and consumer price indices will be announced next week.
There is “significant” uncertainty about where U.S. inflation will head in the coming months, San Francisco Fed Chair Mary Daly said Thursday.
Elsewhere, a senior Israeli official said the latest round of indirect negotiations in Cairo to halt hostilities in Gaza had ended and that Israel would continue its operation in Rafah.
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Spot silver rose 0.2% to $28.38 an ounce and was expected to record its best week since April 5.
Platinum rose 0.6% to $983.78 and palladium rose 0.5% to $971.50. Both metals were poised for weekly gains.
