Gold climbs

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Gold prices surged to another record high on Friday as data showing a rise in the US unemployment rate boosted expectations that the US Federal Reserve could begin cutting interest rates soon.

Spot gold rose 0.5 percent to $2,170.55 per ounce. US gold futures settled 0.9 percent higher to $2,185.50.

Bullion was set to post its biggest weekly percentage increase since mid-October.

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Gold reached an all-time high of $2,185.19 after a report showed a rise in the US unemployment rate and a moderation in wage gains despite job growth acceleration in February.

“We still believe the same underlying premise remains, which is the combination of the expectation that the Fed is still going to cut rates later this year and dollar weakness,” said David Meger, director of metals trading at High Ridge Futures.

The dollar index was 0.1 percent lower, making gold cheaper for overseas buyers, while the yield on the 10-year US Treasury fell to a more than one-month low.

Traders boosted bets the Fed could start cutting interest rates in May to around 30 percent after the jobs report, although June remained the mostly likely scenario at 73 percent. – Reuters

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