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(Bloomberg) — Gold advanced to reduce a weekly loss as mixed U.S. economic reports clouded the outlook for when the Federal Reserve will boost interest rates.

Bullion for immediate delivery rose 0.2 percent to $1,207.09 an ounce at 10:11 a.m. in Singapore after falling 0.4 percent on Thursday, according to Bloomberg generic pricing. The metal is set to decline 1.5 percent this week, the most since the period to April 24. Gold in Shanghai dropped.

The metal climbed to a three-month high on Monday before retreating as data showed that while jobless claims fell to a 15-year low, manufacturing remains tepid. Minutes of a Fed meeting signaled borrowing costs won’t be raised in June and growth may pick up after stalling in the first quarter. Inflation figures for April are due on Friday, when Fed Chair Janet Yellen is scheduled to speak.
“The focus for the bullion market may shift to the upcoming release of the U.S. consumer prices on May 22, especially if the data show an increase in deflationary pressures,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “Gold prices may stay firm in the near term with support near $1,200 an ounce.”

Policy makers are monitoring labor market progress as part of their dual mandate, which includes an inflation target. The four-week average for jobless claims decreased to 266,250 in the period ended May 16 from 271,750, according to the Labor Department on Thursday. The Markit Economics preliminary May manufacturing index fell to the lowest since January 2014.
The consumer price index may show a 0.1 percent rise on the month after a 0.2 percent gain in March, according to a Bloomberg survey. Price increases excluding food and fuel slowed to 1.7 percent year-on-year from 1.8 percent in March.

Gold for June delivery added 0.2 percent to $1,206.30 an ounce on the Comex. Bullion of 99.99 percent purity fell 0.4 percent to 240.81 yuan a gram ($1,208.56 an ounce) on the Shanghai Gold Exchange, extending a weekly loss.

Silver for immediate delivery fell 0.1 percent to $17.1385 an ounce, set for the first weekly drop in four. Platinum was little changed at $1,154.11 an ounce, while palladium increased 0.1 percent to $781 an ounce.

To contact the reporter on this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net To contact the editors responsible for this story: James Poole at jpoole4@bloomberg.net Ovais Subhani