Gold headed for its first weekly gain since late May after soft U.S. payrolls data reduced Fed hike expectations, even as Indian buying cooled and Chinese discounts narrowed.
Gold rose on Friday and was set for its first weekly gain since late May after weaker-than-expected U.S. nonfarm payrolls data lowered expectations for a September Federal Reserve rate increase. Spot gold was up 1.4% at about $4,182.28 an ounce by 4:30 a.m. ET and on track for a 2.3% weekly gain, while physical demand in India softened as local prices rebounded from a three-month low and buying interest in China improved slightly. Indian dealers quoted premiums of up to $5 an ounce and discounts of $7, while China’s market narrowed to par to a $2 discount from last week’s $3 to $7 discounts.