Gold Gains, Stays Close to Peak as Investors Brace for Jobs Data

Image Credit: Reuters

Gold prices advanced in Asian trading on Friday, staying near record highs as investors sought safe-haven assets ahead of key U.S. nonfarm payrolls data.

The precious metal was on track for strong weekly gains, driven by renewed U.S.-China trade tensions and a weaker dollar. Additionally, geopolitical concerns escalated after U.S. President Donald Trump stated intentions to take control of the Gaza Strip, further boosting demand for gold.

Spot gold rose 0.2% to $2,862.67 per ounce, while gold futures climbed 0.3% to $2,884.81 per ounce as of 00:58 ET (05:58 GMT). Overall, spot prices have gained 2.4% this week.

Analysts at Citi and UBS raised their gold price forecasts for 2025, expecting the metal’s bullish trend to continue. Citi projects gold reaching $3,000 per ounce in the near term, while UBS anticipates it will hit the same mark by the end of 2025.

Gold Remains Strong Ahead of U.S. Jobs Data

Gold remained close to its record high of $2,882.35 per ounce, supported by dollar weakness. However, the dollar steadied on Friday as markets awaited the release of U.S. nonfarm payrolls data.

A robust labor market could limit the Federal Reserve’s incentive to cut interest rates, particularly as inflation concerns persist. The Fed recently signaled it would not rush to lower rates, citing economic uncertainties and Trump’s policies. Prolonged higher rates could weigh on gold’s long-term outlook if inflation remains elevated and the labor market stays strong.

Other precious metals also held steady, posting gains for the week. Platinum futures remained flat at $1,021.65 per ounce, while silver futures inched up to $32.678 per ounce.

Copper Prices Climb on China Stimulus Hopes

Copper prices extended their weekly gains on Friday as investors bet on further economic stimulus from China, the world’s top copper importer, to counteract trade tensions with the U.S.

London Metal Exchange benchmark copper futures climbed 1.1% to $9,389.85 per ton, while March copper futures rose 0.6% to $4.4875 per pound.

Earlier this week, Trump imposed a 10% tariff on all Chinese imports, prompting Beijing to announce retaliatory measures. JPMorgan analysts anticipate Trump may proceed with his proposed 60% tariffs on China.

In response, China is expected to introduce additional stimulus to mitigate the economic impact of the trade dispute. Recent data indicating slower growth in China further supports the case for increased government intervention.

 

 

 

 

 

Paraphrasing text from "RInvesting.com" all rights reserved by the original author.