Gold bulls charge as greenback retreats on jobs data

Gold prices extended gains on Friday as cooling US jobs data weakened the dollar.

The yellow metal is poised to break a two-week losing streak as spot gold (XAU/USD) continues its rise trading at $2,363.79 an ounce by 07:55 BST on Friday.

Bullion prices climbed after data showed a bigger-than-expected increase in weekly US jobless claims, following a softer-than-anticipated nonfarm payrolls reading for April.

The dismal labour market figures reinforced expectations that the Federal Reserve will cut interest rates sooner rather than later. Traders slightly increased bets on a September rate cut, with expectations currently standing at a nearly 50% chance, according to the CME FedWatch tool.

US Treasury yields and the dollar index retreated sharply on Thursday, benefiting gold prices. The precious metal also attracted some safe-haven demand amid concerns over US-China trade tensions and renewed violence between Israel and Hamas.

Looking ahead, the economic calendar is relatively quiet today, with only the Preliminary UOM Consumer Sentiment report due for release. Next week brings key consumer price index data for April, which will likely offer clearer signals on the direction of interest rates.

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