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Gold traded at $4,188.28 an ounce on Friday morning.
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The metal remained down more than 2% for the week.
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Higher bond returns are making gold less attractive.
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US jobs figures arrive at 1.30 pm Nigerian time.
October 2, (THEWILL) – Gold steadied on Friday, October 2, but remained headed for a second consecutive weekly decline, with the US employment report set to test investors’ appetite for the metal later in the day.
Spot gold stood at $4,188.28 per troy ounce at 7.25 am Nigerian time, leaving prices more than 2% lower for the week, according to Reuters. The morning stabilisation had therefore done little to repair the week’s losses.
Investors are awaiting September’s US employment figures, scheduled for 1.30 pm Nigerian time. The release could change expectations for interest rates and the returns available from assets competing with gold.
Bonds Give Gold Tougher Competition
The stronger dollar and elevated US Treasury yields have frustrated gold’s recovery. In Friday commentary carried by The Wall Street Journal, XS.com analyst Simon-Peter Massabni identified both as obstacles, despite the support that moderating inflation could provide.
Gold does not pay interest. An investor holding it earns no regular payment simply for keeping it, unlike a bondholder receiving interest. When bond yields rise, the income forgone by owning gold becomes harder to ignore.
The World Gold Council identifies this competition from income-producing assets as an important influence on gold demand. That does not make bonds and gold interchangeable, but it helps explain why bullion can struggle even during political and economic uncertainty.
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Nigerian investors also face a currency calculation. A fall in gold’s dollar price does not necessarily produce an equivalent decline in its naira value. Naira depreciation can cushion the loss, while appreciation can deepen it, before transaction costs.
The World Gold Council’s research shows how currency movements can produce different gold returns across markets. Today’s dollar quotation alone cannot establish what a Nigerian holder has gained or lost.
Jobs and Wages Set Up the Next Test
Economists surveyed by Reuters forecast 90,000 additional US jobs in September, compared with August’s initially reported 162,000 increase. They expect unemployment to remain at 4.1% and annual wage growth to reach 3.2%.
Revisions to August’s employment count will also attract attention. Economists expect that figure to be revised lower, meaning Friday’s report could alter the picture of both months.
Stronger hiring and wages could reinforce the case for higher interest rates, potentially weighing on gold. Weaker figures could ease that pressure, although no single number determines the Federal Reserve’s decision.
Friday’s morning price is therefore a snapshot before a major release. Gold’s ability to retain any recovery will depend partly on how the jobs figures change expectations for the interest investors can earn elsewhere.
Joy Onuorah is a business journalist and brand communications specialist covering financial markets, artificial intelligence, digital economy, and the ideas reshaping business across Africa and the global market. Beyond her reporting for TheWill, Joy uses brand strategy, storytelling, copywriting, and high-value SEO to help brands build lasting market authority.
