Gold prices drifted higher on Thursday after softer-than-expected U.S. economic data fueled hopes that the Federal Reserve could cut interest rates as soon as September.
Spot gold was up 0.3% at $2,362.10 per ounce, as of 0200 GMT after hitting a near two-week high in the previous session.
U.S. economic data on Wednesday, including a weak services and ADP employment reports, showed a slowing economy.
"A softer-than-expected ISM services report was the gift that Fed doves have been waiting for ahead of a NFP.
Markets are now pricing in a 74% chance of the Fed cutting interest rates at its September meeting, according to the CME FedWatch Tool.
Persons:
Matt Simpson
Organizations:
Federal, Traders, NFP, U.S
Locations:
U.S