Gold prices edged higher during Asian trading hours on Friday, but remained on course for a second consecutive weekly decline, with the precious metal consolidating near two-week lows as markets awaited key United States labour data.
By 3:20 pm AEST (5:20 am GMT), spot gold rose $14.50, or 0.5%, to $3,252.77 per ounce.
Despite the day’s gains, gold is on track for its worst weekly performance in over two months.
The greenback has strengthened throughout the week, buoyed by improved global risk sentiment and optimism around a renewed trade dialogue between the U.S. and major Asian economies, including China.
Reports from China's Ministry of Commerce noted that the U.S. has stated that they are willing to negotiate with China on tariffs, and has recently taken the initiative to convey information to China through relevant parties many times.
All eyes are now on the upcoming U.S. nonfarm payrolls (NFP) report, which is expected to provide fresh clues about the direction of the Federal Reserve’s monetary policy and the near-term outlook for the U.S. dollar.
Markets are expecting an addition of 130,000 jobs in April, down from the 228,000 added in March. The unemployment rate is expected to hold steady at 4.2%.
