Gold rises cautiously before US labor data

Gold prices rose in European trade on Friday, resuming gains after a hiatus on Thursday, and about to mark a weekly profit as the dollar loses ground. 

The current gains are limited as traders shun big positions before major US labor data, expected to provide crucial pricing for the odds of a Fed rate cut in March.

Prices

Gold prices rose 0.15% today to $2914 an ounce, with a session-low at $2896. 

On Thursday, gold lost 0.3% away from a week high at $2929.

Weekly Trades

Gold prices are up 2% so far this week, on track for the ninth weekly profit in two and a half months.

The Dollar

The dollar index fell 0.25% on Friday, extending losses for the fifth straight session and about to hit four-month lows at 103.76 against a  basket of major rivals.

The dollar was hurt after German parties announced massive stimulus plans, while there were concerns that US President Trump’s tariffs could hurt growth.

Fed Governor Christopher Waller said on Thursday said he’s strongly against a rate cut at the Fed’s March meeting, even as he thinks that rate cuts later this year could be appropriate if inflation continues to peter out.

New York Fed President John Williams said the US tariffs will likely push inflation higher, but he believes current interest rate policies are suitable and don’t require changes.

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in March stood at just 5%.

US Jobs

Later today, investors await a batch of crucial US jobs data, with the US economy expected to have created 159 thousand new jobs last month, up from 143 thousand in January, while unemployment is expected to remain at 4.0%.

SPDR

Gold holdings at the SPDR Gold Trust fell 1.72 tons yesterday to a total of 898.64 tons, the lowest since February 20.