Gold is preparing for its fourth consecutive weekly loss with the expectations that the Fed will tighten further in the markets.
Gold is poised for its fourth consecutive weekly loss as markets expect the Fed to continue its tightening policy.
The precious metal has lost 7 percent since it approached its historic high in early May as a series of US data indicated the Fed has a long way to go to cool the economy and rein in inflation.
Spot gold is trading at $1,914 an ounce.
The challenge ahead for the Fed became even more evident on Thursday as private sector employment in the world’s largest economy posted the highest increase in more than a year and layoffs fell to an eight-month low.
Investors will be watching Friday’s nonfarm payrolls data for a better view of the US labor market.
The expectation of further rate hikes, supported by hawkish comments from the Fed, triggered outflows from gold exchange-traded funds, increasing the pressure on the precious metal.
Still, gold found some safe-asset support as central banks turned to hedge against their economic and geopolitical risks. Data from China later on Friday said it could show that the country has increased its precious metal stocks for the eighth consecutive month.