FX.co ★ Gold Dips From Near Record Levels Ahead Of US Jobs Data

Gold prices pulled back from near record levels on Friday but were on track for a weekly gain.

Spot gold shed 0.6 percent to $2,037.32 per ounce but was up 2.5 percent for the week due to weakness in the U.S. dollar, worries around a debt limit deadlock and fears over the health of regional banks. U.S. gold futures were down half a percent at $2,045.10.

U.S. bank stocks tumbled on Thursday and the dollar fell sharply on fears that PacWest and Western Alliance would be the next two regional lenders to cease operations.

PacWest Bancorp accepted that it was exploring strategic options, including a sale.

Western Alliance Bank was alleged to be approaching collapse amid mounting pressure on the U.S. banking system.

Investors are watching what steps U.S. authorities might take to limit contagion from the banking sector stress.

The monthly U.S. jobs report is likely to be in the spotlight today, with economists expecting employment to increase by 179,000 jobs in April after an increase of 236,000 jobs in March.