Gold poised for weekly gain; US payrolls data on tap

March 7 (Reuters) – Gold prices inched lower on Friday but were on track for a weekly rise as uncertainty around US President Donald Trump’s tariff plans firmed demand for bullion, while investors awaited for US non-farm payrolls data later in the day.

FUNDAMENTALS

* Spot gold slipped 0.3% to USD 2,900.48 an ounce as of 0017 GMT. Bullion has gained 1.6% so far this week.

* US gold futures eased 0.6% to USD 2,908.70.

* Trump on Thursday suspended the 25% tariffs he imposed this week on most goods from Canada and Mexico, the latest twist in a fluctuating trade policy that has whipsawed financial markets and fanned worries over inflation and a growth slowdown.

* US jobless claims fell more than expected last week, suggesting that the labor market remained stable in February, though turbulence lies ahead from tariffs on imports and deep government spending cuts.

* Federal Reserve Governor Christopher Waller said he leans strongly against a rate cut at the Fed’s upcoming policy meeting this month, although he reckons cuts later in the year remain on track if inflation pressures continue to abate.

* Bullion is seen as a hedge against political risks and inflation, but higher-for-longer interest rates dampen the non-yielding asset’s appeal.

* Spotlight is on the non-farm payrolls report due at 1330 GMT, which is expected to show a gain of 160,000 jobs for February, a Reuters survey showed.

* Spot silver was little changed at USD 32.60 an ounce and platinum was largely flat at USD 965.23, while palladium fell 0.3% to USD 939.25.

DATA/EVENTS (GMT)

0700 Germany Industrial Orders MM, Manufacturing O/P Cur Price SA, Consumer Goods SA Jan

0700 UK Halifax House Prices MM, Halifax House Prices YY Feb

0745 France Reserve Assets Total Feb

1000 EU GDP Revised QQ, GDP Revised YY Q4

1330 US Non-Farm Payrolls, Unemployment Rate, Average Earnings YY Feb

(Reporting by Anushree Mukherjee in Bengaluru; Editing by Varun H K)