Gold prices hit 1-month high as dollar weakens, set for weekly gain

Gold prices scaled a one-month peak on Friday, supported by a lower U.S. dollar, which also put bullion on track for a third straight weekly gain.

FUNDAMENTALS

* Spot gold was up 0.2% at $1,871.69 per ounce, as of 0048 GMT, its highest since May 9. Gold prices have risen about 1% this week.

* U.S. gold futures were up 0.3% to $1,875.90.

* Gold prices rose over 1% on Thursday supported by a dip in the dollar and data showing U.S. private payrolls rose less than expected last month.

* Signs of an economic crisis can be supportive for gold demand, as investors consider it as a safe-haven asset.

* The dollar edged lower, making greenback-priced bullion more attractive for overseas buyers. [USD/]

* The Federal Reserve is likely to continue tightening monetary policy beyond the half percentage point interest rate hikes expected at each of its next two meetings, two policymakers signaled on Thursday, with the only question being how much.

* Higher short-term U.S. interest rates increase the opportunity cost of holding gold, which bears no interest.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 1,066.04 tonnes on Thursday from 1,067.20 tonnes on Wednesday. [GOL/ETF]

* Spot silver rose 0.5% to $22.40 per ounce, and has gained 1.4% this week.

* Platinum firmed 0.1% to $1,023.33, and is on course for a weekly uptick of about 7.4%, its most since May 2021.

* Palladium climbed 0.6% to $2,066.38.

DATA/EVENTS (GMT)

0750 France S&P Global Serv/Comp PMIs

0755 Germany S&P Global Services PMI

0755 Germany S&P Global Comp Final PMI

0800 EU S&P Global Serv/Comp Fnal PMIs

1230 US Non-Farm Payrolls

1230 US Average Earnings YY

1345 US S&P Global Serv/Comp Fnal PMIs

1400 US ISM N-Mfg PMI