Investing.com — Gold prices were little moved in Asian trading on Friday as markets continued to dislike the yellow metal ahead of important U.S. jobs data, but the prospect of higher interest rates for an extended period of time pushed gold lower for the week. It is expected to decline.
The yellow metal had tumbled from record highs over the past two weeks as demand for safe-haven assets dried up and pressure on U.S. interest rates resumed.
Prices for June expirations rose slightly to $2,311.45 per ounce by 00:21 ET (04:21 GMT), but remained steady at $2,302.72 per ounce.
The price of the yellow metal found some relief as the dollar weakened in overnight trading. However, this only served to limit recent gold losses.
Gold falls about 1% this week, pending release of non-farm payrolls.
Spot prices fell about 1% this week, marking the second consecutive week in the red. The prospect that US interest rates will remain high for an extended period has dampened the price outlook, resulting in losses for gold bullion.
Economic data released later on Friday is expected to be further factored into the interest rate outlook. If signs of strength in the labor market continue, the Fed will have more room to keep interest rates high for an extended period of time.
The central bank recently warned that this situation is likely to persist in the short term and that rising inflation also gives the Fed little reason to cut rates. However, the Fed also signaled that it has no intention of raising rates further.
Still, the prospect of higher long-term interest rates bodes poorly for gold, given the increased opportunity cost of investing in the yellow metal. As geopolitical tensions eased in the Middle East, demand for safe gold dried up, leaving the yellow metal vulnerable to a collapse in interest rates.
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Other precious metals were also a little mixed this week. It rose slightly on Friday and is set in the red for the second week. But this week, the stock had rebounded from a three-week low and was expected to rebound nearly 6%.
Copper prices fall for the week after five weeks of gains
Among industrial metals, copper prices were flat on Friday, but headed for a slight decline for the week as concerns about U.S. interest rates led to profit-taking. However, prices are still eyeing two-year highs.
On the London Metal Exchange, it rose 0.2% to $9,827.0 per tonne, but fell slightly to $4.5012 per pound.
The two contracts were expected to fall between 1% and 1.5% this week after rising for five straight weeks on hopes of tight supply.
