Gold soared $14.60 to trade at 1272.80 ahead of the all-important US nonfarm payroll report. Traders are edging that the report will miss expectations indicating a slowdown in the US economy. Gold edged lower on Friday, but was not far from a 13-month peak reached in the previous session when a weaker dollar and technical buying gave bullion its best day in two weeks.
Investors are eyeing crucial US nonfarm payroll data due later in the day, where a strong reading for February could stall further gains in the precious metal, now up nearly 19% this year and among the top commodity performers.
Also boding well for gold was data on Thursday that showed the US economy’s service sector expanded in February at a slightly slower pace than the previous month and employment declined for the first time in two years.
Dallas Federal Reserve president Robert Kaplan called on the US central bank to be patient when it came to raising interest rates, citing the effect of tighter financial conditions on US economic growth.
Several major central banks have expanded monetary easing measures since January. Those in the Eurozone, Japan, Sweden, Denmark and Switzerland adopted the negative interest rate.
The actions of Bank of Japan and the European Central Bank have a far more significant impact on the global economy and financial markets, compared with those of the central banks of the relatively smaller Sweden, Denmark and Switzerland.