Gold slips before US payrolls data, set for second weekly loss

Spot gold dropped 0.6% to $4,154.78 per ounce early on Friday, leaving it more than 3% lower for the week so far, according to Business Recorder. US gold futures shed 0.4% to $4,184.00, putting the metal on course for a second weekly loss in a row. Pressure came from a firmer dollar and high Treasury yields, while investors waited for the September US nonfarm payrolls report due at 1230 GMT.

The greenback was on track for a weekly rise, which makes metals priced in dollars more costly for buyers holding other currencies. Yields on 10- and 30-year Treasuries touched their highest readings since 2002 on Thursday. Kyle Rodda, senior financial market analyst, said traders are focused on US rate expectations and Middle East developments, adding that a hot payrolls print could lift the likelihood of further Fed tightening.

Traders now put the chance of a rate hike this month at about 25%, down from roughly 70% earlier in the week, though they still see a 79% chance of an increase in December. Silver lost 0.5%, reaching $60.53, while platinum declined 0.4% to $1,716.93 and palladium edged up 0.1% to $1,172.80. Sources say Iran is preparing a stronger reply if the United States restarts large-scale attacks, while its diplomacy is seen privately as unlikely to succeed.