Gold Steady Ahead of US Payrolls Data, Set for Weekly Gain

Gold prices remained steady in early Asian trading on Friday, holding near $4,475.75 per ounce, as investors turned their attention to the upcoming US nonfarm payrolls report for clarity on the Federal Reserve's interest rate trajectory.

The metal is on track for a modest weekly gain, supported by a 2% jump on Thursday. That rally followed comments from Fed Governor Christopher Waller, who indicated he would back holding rates steady if incoming data continued to show easing inflation pressures. His remarks led traders to scale back expectations for a September rate hike.

Market pricing now reflects roughly a 50% chance of a rate increase later this month, according to the CME FedWatch Tool. While gold is traditionally viewed as a hedge against inflation, higher interest rates typically weigh on the non-yielding asset.

The US jobs report, due at 1230 GMT, is expected to be a key catalyst. Recent data showed a marginal rise in weekly unemployment claims amid low layoffs, pointing to a stable labour market.

Across other precious metals, spot silver slipped 0.1% to $66.88 per ounce, platinum eased 0.3% to $1,820.18, and palladium declined 0.4% to $1,415.37. In corporate news, Impala Platinum reported a more than 31-fold surge in annual profit, driven by stronger platinum group metal prices.

Meanwhile, the European Central Bank is widely expected to raise rates on September 10 for what could be the second and final increase in its shortest tightening cycle in 15 years, according to a poll of economists.