Gold prices are heading for its best week in more
than ten months Friday as a modest bounce in oil prices boosted demand for the
metal as an inflation-hedge.
Spot gold was little changed at $1,204.80 an ounce in
early Asian trade Friday after dropping 0.3 percent in the previous session. The
metal was set for a 3-percent gain for the week - its biggest jump since
February.
However inventors remained worried over a key U.S.
jobs report that could trigger sharp moves again for the yellow metal. Gold’s outlook
for the day and week depends on the U.S. nonfarm payrolls report due later in
the day. Gold prices were also tracking central bank developments in Europe.
The report is keenly watched as a gauge of economic
strength and for its impact on the dollar and the Federal Reserve's monetary
policy.
A strong report could prompt the Fed to raise rates
soon. Investors fear higher rates could dull the appeal of gold, a
non-interest-bearing asset. A weak report on the other hand could boost the
appeal of safe-haven gold.
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