Gold rose above $2,680 on Friday, recovering slightly from a more than 1% drop in the previous session, as investors continued to assess the latest economic data.

U.S. factory-rate prices rose more than expected in November, fueling concerns that inflation may remain above the Federal Reserve's target into next year. However, initial jobless claims unexpectedly jumped to a nearly two-month high, far surpassing forecasts, underscoring the risk of a weakening labor market.

Markets still largely expect a 25bps hike by the Fed next week and are pricing in further rate cuts next year, although uncertainty remains about the extent of those cuts.

Meanwhile, dovish moves by other major central banks had little impact on gold prices. The SNB cut rates by 50bps, the ECB by 25bps, the BoC by 50bps, and the BoJ signaled it would hold off on further hikes. Over the week, the precious metal was poised for its first gain in three weeks.

Source: Trading Economics