Gold price edges up, holds tight range ahead of US data

Gold prices inched higher on Friday and were stuck in a narrow range as the dollar strengthened ahead of U.S. nonfarm payrolls data that could provide further clarity on the economic damage from the coronavirus.

Spot gold was up 0.2% at $1,616 per ounce by 1205 GMT. The metal has declined nearly 0.5% so far this week after an 8% jump in the previous week.

U.S. gold futures edged 0.1% higher to $1,639.40 per ounce.

"The U.S. dollar is moderately stronger and that`s weighing on the gold prices," said Bank of China International analyst Xiao Fu.

"It`s still a tug-of-war situation for gold between the virus and the equity markets; when equity markets further sell off, there is request for margin calls again. So it`s very unclear if there will be an upward trend, and gold is expected to be range-bound in the near-term."

Safe-haven gains for the U.S. dollar limited gold`s advance, with the dollar index <.DXY> edging towards a 2% weekly rise as global recession fears intensify.

Focus now shifts to the U.S. nonfarm payrolls report due at 1230 GMT. Economists are forecasting job losses of 100,000 for last month, a sharp reversal from gains of 273,000 in February, according to a Reuters poll.

On Thursday, gold gained 1.2% after the number of Americans filing claims for unemployment benefits last week shot to another record high as more jurisdictions enforced stay-at-home measures to curb the pandemic.

Global coronavirus cases surpassed 1 million on Thursday, with more than 53,000 deaths as the outbreak spread further in the United States and the death toll climbed in Spain and Italy, according to a Reuters tally of official data.

"Even after the health crisis has peaked, the economic ramifications are set to continue to be a drag on risk assets, with emerging markets being particularly vulnerable," FXTM analysts said in a note.

Palladium slipped 1.5% to $2,179.56 an ounce on Friday, while platinum dipped 0.7% to $722.58. Both metals were set to register a weekly loss.

Silver shed 0.7% to $14.43 per ounce.

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European stock markets fell as more companies flagged a hit to business from the virus, foreshadowing a deeper earnings recession ahead of the reporting season.

Reflecting investors interest in bullion, holdings of the world`s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.3% to 971.97 tonnes on Thursday.