Gold looked calm early Friday, moving in rangebound after yesterday`s heavy selloff. But the precious metal is ready for post another weekly gain.
The prices ended lower after touching the lowest in five weeks, hurt by the upbeat US employment report which showed that the world`s largest economy added more jobs than estimated in June, suggesting the US recovery may be gaining traction.
As of 03:36 a.m. ET, Spot Gold was up 0.21% at $,3220.63 an ounce, rebounding slightly from yesterday`s close at $1,319.30.
The day`s other data added to the optimism, but further hurt gold, with jobless claims low and stable, trade data showing a rise in exports, and the ISM non-manufacturing report showing impressive acceleration in new orders.
The Dow gained 0.54% and was over 17,000 at a new record 17,068.
On Tuesday, the precious metal hit the highest level in more than three months, as data showed that world`s largest gold-backed exchange-traded fund, SPDR Gold Shares, reported a large increase in its gold holdings.
The Federal Reserve`s ultra-easy monetary policy was the main reason behind the gold`s recent surge. The Fed vowed to keep low interest rates for an extended period of time after ending bond purchases.
The gold`s recent rally was also inspired by growing tension in the Iraq and Ukraine, which boosted the metal`s safe-haven appeal.