LONDON: Gold edged higher on Friday, as the dollar cut earlier gains against the euro and the yen and European shares dropped as investors anticipated potentially weak US non-farm payrolls data.
The metal matched a similar pattern in other commodities, such as copper, further recouping heavy losses seen in the previous session, as investors refrained from taking large bets.
Gold edged up 0.4 percent to $1,558.40 by 1137 GMT, but it was still down about 1.6 percent on the week and heading for its second week of declines. It fell to a 10-month low at $1,539.74 on Thursday, hurt by a jump in the dollar after the Bank of Japan unveiled ambitious monetary stimulus plans.
US gold futures for June delivery was up 0.1 percent to $1,555.20 an ounce.
“The market is on hold ahead of the non-farm payrolls, which is going to be crucial data to look out for,” Standard Chartered analyst Dan Smith said.
“Crucially, investor confidence in gold is at rock bottom with little chance of a sustained recovery where physical flows are not substantial enough to counter fund liquidations,” VTB Capital said in a note.
China was absent from the physical market for a Thursday and Friday holiday, adding to the overall weakness in metals.
In other precious metals, silver rose 0.5 percent to $27, after tumbling to its lowest level since July 24 in the previous session.
Platinum, which dropped to its lowest since late August on Thursday, was up 0.7 percent at $1,528.74. Palladium rose 0.8 percent to $729.72. reuters
