Gold on track for weekly gains as US jobs draw attention

Gold prices rose on Friday and were on track for weekly gains as traders awaited US jobs data to gauge the path of potential Federal Reserve interest rate cuts.

Basics

* Spot gold was up 0.1% at $2,358.14 an ounce by 0045 GMT, up 1% on the week. U.S. gold futures were down 0.1% at $2,366.30.

*The non-farm payrolls report is due at 1230 GMT.

* Economic data on Wednesday, including weak ADP services and employment reports, pointed to a slowdown in the US economy. A separate report last week showed an increase in initial claims for unemployment benefits.

According to CME's FedWatch tool, traders currently place a 73% chance of a Fed interest rate cut in September.

* Falling rates reduce the opportunity cost of holding gold without yield.

* Officials advised a wait-and-see approach before cutting interest rates, according to minutes from the central bank's June meeting.

* On the geopolitical front, Israeli Prime Minister Benjamin Netanyahu told US President Joe Biden on Thursday that they had decided to send a delegation to resume pending hostage-release talks with Hamas, their respective administrations said.

* Spot silver rose 0.2% to $30.45 and is heading for its best week since May 17.

* Platinum fell 0.2% to $1,000.82 and palladium added 0.2% to $1,019.11. Both metals are headed for weekly gains.

Data/Events (GMT)

0600 Germany Industrial Production MM May

0600 Germany Industrial Production Year May

0600 United Kingdom Halifax House Prices YY, MM June

1230 US Nonfarm Payrolls, June

1230 US Unemployment Rate, June

1230 Year-over-year June average salary in the United States