Gold Edges Up Ahead Of US Jobs Report

(RTTNews) - Gold edged up slightly on Friday as wild volatility in bond and currency markets eased ahead of the all-important U.S. jobs report due later in the day.

Also, Brent crude futures fell more than 3 percent toward $99 a barrel, helping ease concerns around inflation and potential rate hikes.

Spot gold edged up 0.2 percent to $4,185.82 an ounce but was on course for its second straight weekly decline. U.S. gold futures were up 0.3 percent at $4,214.47 an ounce. Oil prices headed for a weekly loss on signs of recovering Middle East supplies to prewar levels and reports suggesting that European Union countries are discussing a French proposal to release fuel and crude stockpiles to ease acute market tightness and help avert a potential U.S. diesel export ban.

The U.S. dollar held at a 17-month high and headed for its third straight week of gains in the face of inflationary pressures.

Global bond yields eased back from recent highs after some Federal Reserve officials signaled that an October rate hike may not be urgent.

Minneapolis Fed President Neel Kashkari said that inflation remains too high, but he is unsure about whether the next rate hike should happen at the Oct 27-28 meeting.

Federal Reserve Vice Chair Philip Jefferson saw no urgency for the Fed to act again, emphasizing that any future adjustments in policy should be determined by carefully analyzing trends in the data, the evolving outlook, and the balance of risks.

In economic releases, trading later in the day may be influenced by the release of the U.S. Labor Department's closely watched monthly jobs report.

Economists expect employment to increase by 90,000 jobs in September after an increase of 162,000 jobs in August. The unemployment rate is expected to hold steady at 4.1 percent.

Much attention will be on hourly earnings after the ISM survey flashed a strong warning that inflation is resurgent.

Elsewhere in Europe, Eurozone inflation accelerated more than expected in September on rising energy and food prices, flash estimate from Eurostat showed earlier today.

Inflation rose to 3.8 percent in September from 3.2 percent in August. The rate was forecast to climb to 3.7 percent.