IGI Logo

Gold prices hovered near a four-week high on Friday, poised for their best week since mid-November, as investors awaited U.S. jobs data to gauge how aggressively the Federal Reserve might cut interest rates this year.

Spot gold edged 0.1% higher to $2,672.64 per ounce, as of 0309 GMT. Bullion has gained more than 1% so far this week.

U.S. gold futures rose 0.2% to $2,696.30.

Investors will closely watch the key government payrolls report scheduled for release at 8:30 a.m. ET. According to a Reuters survey, non-farm payrolls are expected to have increased by 160,000 in December, following a jump of 227,000 in November.

"We expect gold to drop a little in case the Non-farm payroll (NFP) report comes on a higher side. Reports suggest that President-elect Trump may announce an economic emergency to roll out tariffs smoothly. All these should support the dollar and gold might just decline in the near term. Having said that, $2,650 is a good support," said Jigar Trivedi, senior analyst at Reliance Securities.

Gold prices strengthened to a nearly four-week high in the previous session, supported by safe-haven demand, while investors weighed how U.S. President-elect Trump's policies would impact the economy and inflation.

Trump will return to office on Jan. 20 and his proposed tariffs and protectionist policies are expected to fuel inflation.

Kansas City Federal Reserve President Jeff Schmid signalled on Thursday a reluctance to cut interest rates again as the U.S. central bank comes into the New Year facing a resilient economy and inflation that remains above its 2% target.

Gold is used as a hedge against inflation, although higher interest rates reduce the appeal of holding the non-yielding asset.

Spot silver was up 0.4% to $30.24 per ounce, platinum dropped 0.1% to $957.43 and palladium added 1.4% to $939.13. All three metals were headed for weekly gains