Gold prices surged on Friday, edging closer to record-high levels, as investors sought safe-haven assets amid ongoing trade tensions. The precious metal was on track to secure its sixth consecutive weekly gain, bolstered by concerns over global trade and anticipation surrounding the release of the U.S. payrolls report.
As of 0506 GMT, spot gold rose by 0.4% to $2,866.58 per ounce, marking a weekly gain of more than 2%. The metal had reached an all-time high of $2,882.16 earlier in the week. U.S. gold futures also saw a 0.4% increase, settling at $2,888.70.
Brian Lan, managing director at Singapore-based GoldSilver Central, emphasized the market’s upward trend. “It’s still a trending market, and we will continue to see gold prices push to newer heights because now it’s uncharted territory,” he said.
The World Trade Organization’s recent announcement that China had initiated a dispute over U.S. tariffs added to the uncertainty, further driving investors toward gold. Goldman Sachs highlighted the possibility of an upside risk to their $3,000 gold price target, noting that ongoing U.S. policy uncertainty could sustain central bank and investor demand for hedging.
Attention now shifts to the upcoming U.S. employment report, scheduled for release at 1330 GMT, which is expected to provide key insights into the direction of U.S. interest rates. Chicago Federal Reserve President Austan Goolsbee suggested on Thursday that a full-employment economy with solid growth and falling inflation could allow the Federal Reserve to continue its rate cuts. However, he also noted that concerns over tariffs and other policy changes might prompt a more gradual approach.
Gold is widely regarded as a safe-haven investment during periods of economic and geopolitical turmoil. However, rising interest rates tend to diminish the appeal of the non-yielding asset. ANZ Bank predicted that the Fed would likely cut rates by another 100 basis points, which would likely lower U.S. Treasury yields and reduce the holding costs for gold.
Meanwhile, other precious metals also saw modest movements. Spot silver held steady at $32.22 per ounce, while platinum remained unchanged at $985.80. Palladium saw a slight gain of 0.1%, trading at $979.80 per ounce.
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