Gold flat ahead of US payrolls data, set for 2nd weekly drop
The U.S. central bank held interest rates steady on Wednesday and indicated it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings that could make those rate cuts a while in coming.
were set for a second consecutive weekly fall, even as bullion traded almost flat on Friday as investors refrained from taking big positions ahead of U.S. non-farm payrolls data that could offer more cues on the path.FUNDAMENTALS
* Spot gold was nearly unchanged at $2,302.51 per ounce, as of 0046 GMT. Prices were down more than 1% this week. * U.S. gold futures were flat at $2,310.40 per ounce.
* The non-farm payrolls report is due at 1230 GMT.
* The U.S. central bank held steady on Wednesday and indicated it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing readings that could make those rate cuts a while in coming.
* Bullion is known as an inflation hedge, but elevated interest rates reduce the appeal of holding the non-yielding asset.
* Data on Thursday showed the number of Americans filing new claims for unemployment benefits held steady at a low level last week, pointing to a still fairly tight labour market that should continue to underpin the economy in the second quarter.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.17% to 829.60 tonnes on Thursday from 831.04 tonnes on Wednesday.
* Spot silver fell 0.2% to $26.65 per ounce and was down nearly 2% for the week.
* Platinum gained nearly 0.8% to $957.15 and was on track for a weekly gain. Palladium edged up 0.2% to $937.57.
