Spot Gold scaled a fresh two-week peak of $2,468.53 per troy ounce on Friday and looked set for its largest weekly gain since early April, as disappointing US macro data reinforced expectations of a rate cut by the Federal Reserve in September.
Recent data showed that US manufacturing activity had shrunk at a faster rate than expected in July, while jobless claims rose to a level unseen in almost a year – 249,000.
Market players now await the key US Non-Farm Payrolls report due out later on Friday for more insight into macroeconomic conditions.
Employers in all sectors of the US economy, excluding farming, probably added 175,000 job positions in July, according to market consensus, following a job growth of 206,000 in June.
Lower interest rates reduce the opportunity cost of holding Gold, which pays no interest.
In addition, the heightening risk of a wider conflict in the Middle East after the assassination of Hamas leader Ismail Haniyeh is also underpinning Gold’s safe haven demand.
As of 6:46 GMT on Friday Spot Gold was advancing 0.72% to trade at $2,464.06 per troy ounce.
The precious metal was poised to register a 3.26% weekly gain.
Gold Futures for delivery in December were up 1.12% on the day to trade at $2,508.55 per troy ounce.
Elsewhere, Silver Futures for delivery in September were gaining 1.95% to trade at $29.032 per troy ounce.
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