WASHINGTON (dpa-AFX) - Gold prices were subdued on Friday as signs of resilience in the U.S. labor market prompted traders to trim their bets on aggressive Federal Reserve easing in 2024.
Investors also monitored the latest developments in the Middle East after the U.S., Qatar and Egypt called for a new round of cease-fire talks to end the war in Gaza.
Spot gold slipped 0.2 percent to $2,42.23 per ounce while U.S. gold futures were little changed at $2,463.15.
The dollar hovered close to a one-week high against major rivals after new data showed first-time claims for U.S. unemployment benefits pulled back by more than expected in the week ended August 3rd.
Initial jobless claims fell to 233,000, a decrease of 17,000 from the previous week's revised level of to 250,000.
The bigger than expected decline eased concerns about the strength of the labor market and prompted traders to pare bets on big rate cuts.
In a speech to the Kansas Bankers Association, Federal Reserve Bank of Kansas City President Jeffrey Schmid signaled he's not ready to support a reduction in interest rates and viewed the current policy stance as 'not that restrictive'.
Overall, the economy is resilient and labour market still quite healthy, Schmid said.
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