(RTTNews) – Gold was subdued on Friday but headed for a modest weekly gain on easing Fed rate-hike expectations.
Spot gold was down 0.2 percent at $4,466.31 an ounce after climbing 2 percent on Thursday. U.S. gold futures slipped 0.7 percent to $4,510.39 an ounce.
The U.S. dollar index was steady as traders awaited the U.S. monthly employment report for August later in the day for additional clues on the outlook for interest rates.
Economists expect employment to climb by 55,000 jobs in August after a decline of 23,000 jobs in July. The unemployment rate is expected to tick up to 4.2 percent from 4.1 percent.
Traders scaled back expectations of a Federal Reserve rate increase this month after Federal Reserve Governor Christopher Waller argued in favor of keeping rates unchanged at the upcoming policy meeting.
Investors also kept a close eye on the latest developments in the Middle East amid elevated concerns over supply disruptions.
Brent crude futures fell slightly today but were up more than 8 percent so far this week due to renewed U.S.-Iran hostilities and fears of prolonged disruptions to crude shipments through the Strait of Hormuz.
Iran claimed to have conducted retaliatory strikes on U.S. bases in Kuwait and UAE for a second day in a row even as U.S. President Donald Trump stated that Washington can attack Iran ‘anytime we want.’
U.S. Vice President JD Vance ruled out talks with Iran until it stops attacking commercial shipping in the Strait of Hormuz, adding “all options” remain on the table in dealing with Tehran.
Iranian Vie President Mohammad Reza Aref said that Iran will adopt an “asymmetric” and “multi-layered” response to any future U.S. attacks and warned, “Dark months await the American economy.”
Israeli Prime Minister Benjamin Netanyahu stated that toppling Iran’s government is now a central Israeli objective and “within reach.”
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