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PRECIOUS-Gold eyes biggest weekly gain since March 2018 on rate cut views

Published 07/06/2019, 10:15 pm
© Reuters.  PRECIOUS-Gold eyes biggest weekly gain since March 2018 on rate cut views
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* Gold up 2.3% so far this week

* U.S. jobs data due at 1230 GMT

* Platinum on track for first weekly gain in 7 weeks

* Silver set to post biggest weekly rise in over 4 months (Updates prices)

By Arijit Bose

June 7 (Reuters) - Gold prices steadied on Friday, but remained on course for their biggest weekly gain since March 2018, after rising expectations for a U.S. rate cut and concerns over trade tussles boosted demand for safe-haven bullion.

However, having failed earlier this week to breach its 2019 high of $1,346.73, analysts expect the metal to consolidate until there is fresh impetus.

Spot gold XAU= was steady at $1,335.35 per ounce at 1153 GMT, while U.S. gold futures GCcv1 were down 0.2% at $1,339.60.

"We have had quite a move higher earlier this week, but we are moving towards levels where the market will struggle to go much higher," ING analyst Warren Patterson said.

Gold has rallied in a short span of time, having gained about 2.3% this week.

"Overall sentiment is still fairly supportive for the gold market," Patterson added, attributing the recent rally to a two-pronged U.S. trade spat with Mexico and China, and hopes for an interest rate cut by the U.S. Federal Reserve.

The United States and Mexico concluded their second day of talks on trade and migration on Thursday and markets rebounded on optimism a deal could be close. However, it remains unclear whether Mexican pledges to curb migration flows will be enough to persuade Washington to postpone tariffs. President Donald Trump said he would decide whether to carry out his threat to hit Beijing with tariffs on at least $300 billion in Chinese goods after a meeting of leaders of the world's largest economies late this month. appeal as a safe-haven investment is bolstered in times of geopolitical uncertainty.

"Gold is likely to stay muted through the rest of the day before the release of the non-farm payrolls. Investors want to see the impact on the U.S. jobs market before reassessing the current pessimism," Howie Lee, an economist at OCBC Bank, said.

U.S. non-farm payrolls data at 1230 GMT will provide clues on the trajectory of interest rates.

Meanwhile, New York Fed President John Williams (NYSE:WMB) on Thursday acknowledged the impact of trade and global growth concerns on business investment, but said he was keeping an open mind on interest rates. other metals, silver XAG= rose 0.4% to $14.91 per ounce, on track for its biggest weekly increase since late January.

Platinum XPT= edged 0.2% lower to $801.40 an ounce. The metal was still headed for its first weekly gain in seven.

Palladium XPD= dipped 0.2% to $1,348.65 an ounce.

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