Dec 2 (Reuters) – Gold prices eased on Friday ahead of a key US jobs report, but were set for their best week in three as the dollar weakened on prospects of slower US interest rate hikes.
Spot gold fell 0.2% to USD 1,799.80 per ounce, as of 0729 GMT, after hitting its highest since Aug. 10 at USD 1,804.46 earlier in the session. US gold futures were down 0.1% at USD 1,813.30.
Gold prices have risen about 2.5% this week in what would be their second straight weekly gain.
The dollar index held steady but was headed for a weekly loss of about 1%, weighed down by expectation that the peak in US interest rates was on the horizon.
A weaker greenback makes dollar-priced gold less expensive for overseas buyers.
After Fed Chair Jerome Powell’s comment on Wednesday, the dollar corrected heavily and this supported gold’s appeal, said Hareesh V, head of commodity research at Geojit Financial Services in Kochi, India.
“The USD 1,805 level may act as an immediate resistance for gold, a break above which may trigger fresh rallies.”
Earlier this week, Powell had said it was time to slow rate hikes. Rising rates have kept a hold on gold’s traditional status as an inflation hedge this year, as they translate into higher opportunity cost of holding the non-yielding metal.
Investors now await the US Labor Department’s non-farm payrolls data due at 1330 GMT.
“A softer print on wage growth and NFP would be a case of all stars aligned for further dollar weakness and that should further benefit gold. However, an upside surprise in the report may halt gold’s ascend, especially with prices trading near key resistance level,” OCBC FX strategist Christopher Wong said.
Spot silver was flat at USD 22.77, platinum fell 0.1% to USD 1,040.13 and palladium lost 0.5% to USD 1,932.45.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
This article originally appeared on reuters.com