Gold was little changed on Friday, erasing earlier losses as the dollar came under pressure from a U.S. payrolls report that flagged up weak wage growth last month, weakening the case for near-term interest rate hikes. While U.S. job growth surged more than expected in January as construction firms and retailers ramped up hiring, wages barely rose. Spot gold was unchanged at $1,215.75 an ounce, off an earlier low of $1,207.10. Nonfarm payrolls increased by 227,000 jobs, the largest gain in four months. The unemployment rate, however, rose one-tenth of a percentage point to 4.8 percent. Markets seem to be looking at the soft wage data, which signal rather weak inflationary pressure, and therefore less need for the Fed to raise interest rates. Gold is on track to rise around 2 percent this week as the dollar headed for a fourth weekly drop on worries about Donald Trump's presidential style and a lack of clarity on rate hikes. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, rose for a second day on Thursday by 1.5 tonnes to 811.22 tonnes.

Silver was down 0.2 percent at $17.40, lingering around the 100-day moving average. The metal remained at the higher range with key support of the 100-day moving average. It is expected to keep consolidating between $17.40 to $17.90 with higher likelihood for further increase. 
 

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