Bullion up over 3 so far in the week
Focus on US PPI and CPI data due next week
Silver, platinum, palladium up for the week

May 10 Reuters Gold prices strengthened on Friday and were on track for their best week since early April, as weak U.S. employment figures fuelled bets of interest rates cuts by the Federal Reserve this year.

Spot gold gained 1.1 to 2,372.46 per ounce by 1203 GMT, hitting its highest in more than two weeks. Prices have risen over 3 so far in the week.

U.S. gold futures jumped 1.7 to 2,379.30.

On the gold market, focus is likely to be on the development of consumer prices in the U.S. after progress in the fight against inflation has been considered insufficient in recent months and interest rate hopes have been scaled back, Commerzbank said in a note.

Gold extended gains after jumping 1 on Thursday in response to data showing the number of Americans filing new claims for unemployment benefits increased more than expected last week.

Investors are now looking forward to the U.S. producer price index and consumer price index data due next week for fresh clues on the Fed39;s rate trajectory.

According to the CME FedWatch Tool, traders are pricing in about a 68 chance of a Fed rate cut in September. Lower interest rates reduce the opportunity cost of holding nonyielding gold.

However, there is considerable uncertainty about where U.S. inflation will head in the coming months, San Francisco Federal Reserve President Mary Daly said on Thursday….