Gold heads for second week of loss amid anticipation of US jobs data

Gold prices are heading to decline for the second week in a row, despite the stability of prices on Friday, as investors await non-farm payrolls data in the United States, which may provide indications of the position that the Federal Reserve will adopt regarding monetary policy.

According to Reuters, gold settled in spot transactions at $2,299.49 per ounce by 0702 GMT, and has declined by more than 1% in the week so far. Prices have fallen by more than $130 since rising to an unprecedented high of $2,431.29 earlier in April.

US gold futures also settled at $2,309.20.

“The significant decline over the past two weeks was due to decreased concerns about geopolitical risks,” said Christopher Wong, currency strategist at OCBC.

The US Federal Reserve indicated on Wednesday that it is still inclined to eventually reduce borrowing costs, but indicated that the disappointing recent inflation readings may postpone interest cuts for some time.

The precious metal is usually a hedge against inflation, but high interest rates reduce the attractiveness of gold, which does not generate returns.