Gold trimmed initial gains on Friday, but still posted a weekly rise after an increase in the US unemployment rate boosted bets of a pause in the Federal Reserve’s interest rate hikes.
Spot gold was up 0.1 percent at $1,940.94 per ounce after rising as much as 0.6 percent earlier in the session. It was poised for a 1.4 percent weekly gain after prices touched one-month highs on Wednesday.
US gold futures for December delivery settled 0.1 percent higher at $1,967.10.
US manufacturing contracted for a 10th straight month in August, but the pace of decline continued to slow, data from the Institute for Supply Management (ISM) showed.
“The ISM report has reduced the gold rally to a range trade, likely between $1,920-1960, in the short term. The gold market may wait for more clues as to intentions at the Fed’s September meeting, which will include a fresh set of dots,” said Tai Wong, a New York-based independent metals trader.
US bond yields and the dollar erased initial losses after the manufacturing data, further pressuring non-yielding bullion. – Reuters
