Bullion gains over 1 so far for the week
US labour market, housing data point to slowing economy
Silver, platinum, palladium heads for weekly gains

June 21 Reuters Gold prices were poised for a second consecutive weekly gain on Friday, driven by safehaven demand amid tensions in the Middle East and rising bets that the U.S. Federal Reserve might reduce interest rates later this year.

Spot gold was up 0.1 at 2,362.60 per ounce as of 0516 GMT, after hitting a twoweek high in the previous session.

Bullion has gained over 1 so far for the week, adding to their 1.7 increase last week.

U.S. gold futures rose 0.3 to 2,376.50 on the day.

In the shortterm perspective, the current movement driver of this bullish going gold is primarily driven by rising geopolitical tensions, especially after the news on the attack on Gaza, said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.

On Thursday, several Israeli air strikes in the Gaza Strip killed at least 14 people and wounded dozens of others.

The market is now looking for what is the possibility of another U.S. rate cut after September, which could be supportive of gold, keeping it above that 2,300 level, said Wong.

Data on Thursday showed firsttime applications for U.S. unemployment benefits fell moderately last week, while new housing construction dropped. This, along with tepid retail sales last month, keeps the chance of a September rate cut on the table.

Lower interest rates reduce the opportunity…