05.01.202409:09:00UTC+00Gold Faces Weekly Loss As Traders Pare Rate Cut Bets

Gold traded lower on Friday and headed for a weekly fall as strong U.S. labor market data released the previous day raised fresh uncertainty about the pace of potential rate cuts this year.

Spot gold slipped 0.2 percent to $2,038.35 per ounce, while U.S. gold futures were down 0.2 percent at $2,045.25.

Amid much uncertainty about the timing and pace of interest-rate cuts, investors now look ahead to the release of U.S. nonfarm payrolls data for December later in the day for direction.

Economists expect employment to increase by 170,000 jobs in December after an increase of 199,000 jobs in November.

The unemployment rate is expected to inch up to 3.8 percent from 3.7 percent.

The CME Fedwatch tool shows traders pricing in a 62.7 percent chance of a 25-basis point cut in March, down from the nearly 73 percent chance seen last week.

Traders also await eurozone inflation and producer prices data to be released later today for important clues to European Central Bank policy.