Gold prices edge higher ahead of US payrolls data
Gold hit record high of $2,790.15 on Thursday
U.S. nonfarm payrolls data due at 1230 GMT
US Q3 labour costs growth smallest in more than 3 years
Festivities trigger buying spree in India, but volumes lag
Adds comment, details, updates prices
By Daksh Grover
Nov 1 (Reuters) -Gold prices edged up on Friday, while investors braced for U.S. payrolls data that could provide further clues about the Federal Reserve's interest rate outlook.
Spot gold XAU= rose 0.2% to $2,748.40 per ounce, as of 0756 GMT. Prices ended lower on Thursday after hitting a record high of $2,790.15.
U.S. gold futures GCv1 rose 0.4% to $2,758.70.
"Investors are still in the mindset of buying the dips and that strategy is still going to hold through the (U.S.) election, and maybe after that because there is going to be a lot of turmoil," said Marex analyst Edward Meir.
The Nov. 5 election has entered its final stretch, with polls indicating a close race between Donald Trump and Kamala Harris.
Gold is positioning itself to remain strong regardless of the outcome, as ongoing deficit spending is unlikely to change course quickly, said Alex Ebkarian, chief operating officer at Allegiance Gold.
The market's focus is now on the U.S. nonfarm payrolls report, due at 1230 GMT, for clues about the health of the world's largest economy.
Traders see a 95% chance of a 25-basis-point Fed rate cut next week. FEDWATCH
"With no signs of recession and inflation declining, the economy looks positive... the key now is how quickly the Fed will lower rates," Meir said.
Zero-yield gold thrives in a low interest rate environment.
Data on Thursday showed that U.S. labour costs recorded their smallest increase in more than three years in the third quarter, indicating that inflation was on a downward trend.
On the physical front, gold demand in India jumped this week amid festival purchases, although volumes were lower than usual due to record high prices. GOL/AS
Among other metals, spot silver XAG= was flat at $32.64 per ounce while platinum XPD= gained 0.3% to $990.25. Both metals were on track for weekly declines.
Palladium XPT= was steady at $1,105.96, after hitting a more than one-week low in the session.
Reporting by Daksh Grover in Bengaluru; editing by Janane Venkatraman and Jason Neely
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