An employee puts gold bullions into a safe deposit box at Degussa shop in Singapore
Edgar Su | Reuters
Gold prices were on track for their first weekly fall in four after the dollar firmed, although they traded steadily on Friday ahead of a key U.S. jobs data to gauge the potential of a rate cut by the Federal Reserve as early as March.
Bullion scaled an all-time peak of $2,135.40 on Monday on elevated bets for a rate cut by the U.S. Fed, before dropping more than $100 on uncertainty over the cut’s timing.
The dollar index was on track to snap a third straight weekly loss, making greenback-priced gold more expensive for other currency holders.
Gold remains well-supported above $2,006 per ounce level, but a stronger-than-expected payrolls data could put this support level in jeopardy, said Kelvin Wong, senior market analyst for Asia Pacific at OANDA.
Traders now look forward to U.S. non-farm payrolls report for November due at 1330 GMT, which expected to show that employers added 180,000 jobs last month.
Lower interest rates tend to support non-interest-bearing bullion.
Spot gold looks neutral in a range of $2,019 to $2,039 per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.