Gold heads for first weekly rise in five on easing Fed rate hike bets

Gold rose on Friday and was headed for its first weekly gain in five, as investors dialled back expectations of Federal Reserve interest rate hikes following softer-than-expected U.S. jobs data.

FUNDAMENTALS

* Spot gold TVC:GOLD was up 0.5% to $4,144.83 per ounce, as of 0052 GMT, rising to its highest level since June 23. U.S. gold futures TVC:GOLD for August delivery gained 0.8% to $4,157.50.

* Bullion was on track for a weekly gain of 1.2%, its first since May 25, as weaker-than-expected nonfarm payrolls and private payrolls data tempered concerns around inflation and higher-for-longer interest rates.

* Nonfarm payrolls increased by 57,000 jobs last month, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls advancing 110,000.

* Traders are now pricing in roughly a 54% chance of a rate hike in September, down from 66% before the data, according to the CME FedWatch Tool.

* San Francisco Federal Reserve President Mary Daly said on Thursday that U.S. monetary policy is "slightly restrictive" but that with "exceedingly strong" investment growth in AI-related technology and a stable labor market, it's unclear what the Fed's next step should be.

* The World Gold Council said that central banks were back in buying mode in May and, based on the latest reported data, official gold reserves increased by a net 41 tons during the month.

* Spot silver BIST:XAGUSD1! rose 0.5% to $61.28 per ounce, platinum NYMEX:PL1! gained 1.1% to $1,634.30, and palladium BIST:XPDUSD1! inched up 0.2% to $1,270.25. All three metals were headed for weekly gains.