Gold prices held steady on Friday, on track for their third straight weekly gain, as investors awaited US jobs data for clues on whether the Federal Reserve would hold to its bullion-supporting stimulus programme.
A weak reading on US nonfarm payrolls, due later in the day, would likely prompt the Fed to continue its $85 billion monthly bond purchases to support the economy. That would help gold, typically seen as a hedge against inflation.
“Investors are expecting the Fed to come out and say that they will continue with the monetary easing because many believe that the nonfarm payroll will not be as good as expected,” said Brian Lan, managing director of bullion dealer GoldSilver Central Pte Ltd in Singapore.
Spot gold was little changed at $1,413.35 an ounce by 0715 GMT, after climbing about 0.7 percent on Thursday as the dollar fell sharply against the yen and the euro.
US job growth probably picked up only slightly in May, according to a Reuters survey of economists, suggesting the economy is still in a rut and not strong enough for the Fed to dial back its monetary support.
