Eurozone inflation accelerates more than expected

Gold prices rose in European trade on Friday for the first session in four days, moving away from two-week lows while holding their ground above $2300 as the dollar stalls.

Despite the gains, gold is still heading for the second weekly loss in a row, amid slower haven demand as global trade negotiations progressed, and amid weak odds of a Fed rate cut in the first half of the year.

Now investors await the crucial US payrolls data, which will help determine the future path of monetary policies by the Fed.

Prices

Gold prices rose 0.6% today to $3258 an ounce, with a session-low at $3227.

On Thursday, gold lost 1.5%, the third loss in a row, plumbing two-week lows at $3202 as the dollar strengthened. 

Weekly Trades

Gold is down 1.85% so far this week, on track for the second weekly loss in a row.

US Dollar

The dollar index fell 0.3% on Friday moving away from a three-week high at 100.38, and on track for the first loss in four sessions.

It comes as investors shun off new positions before US payrolls data.

Trade Developments

Chinese reports said the US has communicated with China recently to discuss tariffs, with President Donald Trump saying there’s a high probability of reaching a deal with China.

He also pointed to potential trade deals with India, South Korea, and Japan soon, as he seeks to utilize his tariffs to force beneficial results.

US Rates

Several Fed officials don’t believe there’s an urgent need to review monetary policies soon.

According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in May stood at just 8%.

The odds of such a cut in June stood at a healthier 65%.

US Labor data

Later today, the US payrolls report will be released, expected to show the addition of 138 thousand new jobs in April, down from 228 thousand in March, while unemployment is expected unchanged at 4.2%.

SPDR

Gold holdings at the SPDR Gold Trust rose 1.15 tons yesterday to a total of 945.41 tons, moving away from April 9 lows.