PRECIOUS-Gold hovers near all-time high as soft US data boosts rate cut bets

By Ishaan Arora

Sept 12 (Reuters) - Gold prices rose on Friday to hover near a record high scaled earlier in the week, as concerns over a weak labour market in the U.S. cemented expectations of multiple interest rate cuts by the end of the year, boosting demand for the yellow metal.

Spot gold XAU= was up 0.5% at $3,650.23 per ounce, as of 1027 GMT, near an all-time high of $3,673.95 touched on Tuesday. Bullion has gained 1.8% so far this week and was headed for its fourth straight weekly gain.

U.S. gold futures GCcv1 for December delivery were up 0.4% at $3,689.10.

"The market is preparing for the Federal Reserve to start cutting rates at the next meeting. The expectation is that this is not only one cut, (while) U.S. President Donald Trump's desire for lower policy rates also lifts gold's appeal," said UBS analyst Giovanni Staunovo.

Trump reiterated his call on Wednesday for Federal Reserve Chairman Jerome Powell to cut benchmark interest rates.

"Given these tailwinds and following the recent step higher in exchange-traded fund flows (ETFs), we now look for gold to rise to $3,900/oz by mid next year," he added.GOL/ETF

U.S. consumer prices rose 0.4% in August, the steepest monthly rise in seven months, while weekly jobless claims surged to their highest since October 2021 last week.

The Fed will cut its key interest rate by 25 basis points on September 17, said almost all 107 economists in a Reuters poll.

Non-yielding bullion tends to perform well in a low-interest-rate environment.

Gold prices have risen about 39% so far this year, driven by a soft dollar, strong central bank buying, dovish monetary policy and heightened global uncertainty.

Meanwhile, China is seeking public feedback on a proposal to make it easier to import and export gold and gold products by streamlining the licence system, its central bank said on Friday.

Elsewhere, spot silver XAG= rose 1.7% to $42.27 per ounce, at a 14-year high, platinum XPT= was up 0.9% at $1,391.50 and palladium XPD= gained 1.6% to $1,206.81. All three metals were set for weekly gains.

      
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