* Gold investors already slashing pricing – Analyst
* US benchmark yields peak since June
* US non-farm payroll data due 1230 GMT (recap, adds comment, updates prices)
Oct 8 (Businesshala) – Gold changed little on Friday as investors waited for confirmation of a consolidating US labor market, which could keep the Federal Reserve on track to launch economic stimulus this year.
Spot gold was up 0.1% to $1,757.10 an ounce as of 0905 GMT, while US gold futures fell 0.2% to $1,756.00.
StoneX analyst Ronna O’Connell said the price of gold is already declining, and there is little inclination to take an aggressive position, especially with a non-farm payroll report on the horizon at 1230 GMT.
Fed Chairman Jerome Powell has said it will take a more “decent” jobs report to speed up the process for a $120 billion reduction in the US central bank’s monthly bond purchases.
If the data moves upward, gold may face a knee-jerk reaction as bond yields will probably rise, but “a miss will be helpful for gold as the term ‘stagflation’ is increasingly appearing on the radar.” Giving and the benefits of sleeping out of risk- aversion.”
A Businesshala poll predicted that non-farm payrolls are expected to increase by 500,000 jobs in September.
However, some analysts believe that the outlook for gold is skewed, as the Fed may eventually raise interest rates.
Investors also didn’t notice a stronger US dollar, which makes bullion expensive for foreign buyers, as well as higher US Treasury yields.
Lower incentives and higher interest rates raise bond yields, which translates into the increased opportunity cost of holding bullion, which pays no interest.
Fitch Solutions said in a note on October 7 that safe-haven gold would find some support from higher inflation, geopolitical tensions and rising delta coronavirus cases, factors including Fed tapering, easing pandemic restrictions and strong growth lowering prices.
Spot silver fell 0.4% to $22.49 an ounce.
Platinum rose 1.1% to $990.41 an ounce and rose 2% for the week.
Palladium rose 1.9% to $1,997.47. (Reporting by Arundhati Sarkar in Bengaluru; Editing by Kevin Liffey)