04-01-2022 10:55 AM | Source: Reuters
Gold flat ahead of U.S. data as firmer dollar counters safe-haven demand
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Gold prices struggled for momentum on Friday as a stronger U.S. dollar negated safe-haven demand triggered by a lack of progress in Russia-Ukraine peace talks, while investors awaited U.S. jobs data that could provide cues on policy tightening.

Spot gold stood its ground at $1,937.55 per ounce, as of 0425 GMT, but was on course to end the week more than 1% lower. U.S. gold futures fell 0.5% to $1,944.20.

"Gold is unchanged in Asia, with no signs of weekend haven-buying, another ominous sign, especially as the U.S. dollar continues to rally today," said OANDA senior analyst Jeffrey Halley.

"Gold remains trapped in a $1,920-$1,950 range, but its inability to rally as the U.S. dollar and yields fell this week is a concern and risks are still skewed to the downside."

The dollar index moved higher from a near one-month low hit earlier in the week, making gold more expensive for other currency holders.

Benchmark U.S. 10-year Treasury yields pulled back from near three-year highs. Lower yields reduce the opportunity cost of holding non-yielding gold.

Investors were looking forward to the March U.S. jobs data, due later in the day, for wage inflation and cues on the U.S. Federal Reserve's monetary policy stance.

European buyers of Russian gas faced a deadline to start paying in roubles on Friday, while negotiations aimed at ending the five-week war were set to resume even as Ukraine braced for further attacks in the south and east.

Spot gold may test a support at $1,924 per ounce, with a good chance of breaking below this level and falling towards $1,898, according to Reuters' technical analyst Wang Tao.

Spot silver edged 0.2% higher to $24.82 per ounce.

Platinum rose 0.9% to $991.67, while palladium climbed 0.9% to $2,282.94. Both metals, however, were on course for a fourth consecutive weekly loss.

 

(Reporting by Asha Sistla in Bengaluru; Editing by Sherry Jacob-Phillips)