Gold eyes best week since March 2018 on rate cut views; U.S. jobs data in focus

New York (June 7)  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. U.S. 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. Gold's 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 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. Among other metals, silver rose 0.5% to $14.93 per ounce, on track for its best week since late January.

Platinum edged 0.1% higher to $804.06 an ounce. The metal was headed for its first weekly gain in seven.

Palladium dipped 0.1% to $1,350.75 an ounce

Reuters