Gold prices edged up slightly in Asian trading on Friday, showing modest weekly gains driven by heightened uncertainty over U.S. interest rates and global trade tariffs, which have bolstered demand for the precious metal as a safe haven.
However, gains were capped by the strength of the U.S. dollar and market caution ahead of the release of a key labor market report later in the day. Hawkish signals from the Federal Reserve also contributed to limiting any significant price increases.
By 23:58 ET (04:58 GMT), spot gold had risen 0.1% to $2,672.12 an ounce, while February gold futures climbed 0.2% to $2,695.74 an ounce.
Gold on Track for Weekly Gains Amid Economic Uncertainty
Spot gold prices are up around 1.5% this week, benefiting from safe haven demand driven by growing concerns over economic instability, including uncertainty surrounding U.S. monetary policy and trade tensions.
Markets are particularly focused on the upcoming nonfarm payrolls data for December, expected later on Friday. The labor report could significantly influence the outlook for U.S. interest rates, with payrolls data having consistently exceeded expectations over the past year, signaling continued resilience in the labor market. This strong job market could provide the Federal Reserve with greater flexibility in considering future rate cuts.
Minutes from the Federal Reserve’s December meeting, released this week, showed that policymakers were cautious about reducing rates further due to persistent inflation and a strong labor market. Concerns were also raised regarding inflationary pressures from protectionist and expansionary policies under President-elect Donald Trump, with further uncertainty anticipated as his January 20 inauguration approaches.
Precious Metals See Modest Gains
Other precious metals saw positive movement on Friday. Platinum futures rose 0.9% to $993.20 an ounce, while silver futures gained 0.5%, reaching $31.160 an ounce by 00:12 ET (05:12 GMT).
Copper Prices Rise Amid Stimulus Hopes in China
Copper prices continued their upward trajectory, driven by hopes that China, the world’s largest copper importer, will ramp up economic stimulus efforts in response to weak economic data. Benchmark copper futures on the London Metal Exchange rose 0.5% to $9,123.50 per ton, while March copper futures climbed 0.5% to $4.3355 per pound.
Weak Chinese inflation data released on Thursday has fueled speculation that Beijing will implement more stimulus measures, particularly fiscal policies aimed at boosting private spending. Additionally, concerns about the potential for increased U.S. trade tariffs have further heightened expectations for Chinese economic support to protect its economy, which has struggled with slow growth in recent years.
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