Spot gold was 0.1% lower at $2,290.29 per ounce after reaching a record high of $2,305.04 on Thursday
Gold edged down on Friday, snapping a record-setting rally as focus shifted to U.S. non-farm payrolls data that could offer more clues on the Fed’s monetary policy trajectory.
Spot gold was 0.1% lower at $2,290.29 per ounce, as of 0748 GMT, after reaching a record high of $2,305.04 on Thursday. U.S. gold futures shed 0.1% to $2,309.50.
Gold will continue to rally with normal pullbacks, according to ACY Securities analyst Luca Santos.
The dollar’s drop, expectations the Federal Reserve will cut rates this year, economic uncertainty and growing tensions in the Middle East have been driving forces for the markets and much more for gold, Santos said.
Gold was set for a third consecutive weekly gain, up 2.5%, driven by strong central bank buying and demand from funds.
Gold trades in overbought territory, said InProved precious metals trader Hugo Pascal, adding that he sees a high probability of a correction in the coming days, with $2,250 as the first target.
Focus is now on the U.S. March non-farm payrolls (NFP) data due at 1230 GMT, which could shed more light on the timing of the Federal Reserve’s first rate cut.
A stronger NFP will put pressure on the metal complex, suggesting rising inflationary pressures, Pascal added.
Fed Chair Jerome Powell has reiterated that the U.S. central bank has time to deliberate over its first rate cut, given the strength of the economy and recent high inflation readings.
Traders are currently pricing in a nearly 65% probability that the Federal Reserve will trim rates in June, per the CME FedWatch tool. Lower interest rates reduce the opportunity cost of holding bullion.
