Spotlight on Nonfarm Payrolls as Gold Prices Remain Stable

Image Credit: Reuters

Gold prices inched higher during Asian trading on Friday, on track for weekly gains, as concerns over U.S. interest rates and trade tariffs bolstered demand for safe-haven assets. However, a strong dollar ahead of an upcoming U.S. labor market report and hawkish signals from the Federal Reserve capped further gains.

Spot gold edged up 0.1% to $2,672.12 per ounce, while February gold futures rose 0.2% to $2,695.74 per ounce as of 23:58 ET (04:58 GMT). For the week, spot prices were up about 1.5%, reflecting heightened economic uncertainty that fueled demand for gold as a safe haven.

The market’s attention was focused on the nonfarm payrolls data for December, set to be released later on Friday, which could influence the trajectory of U.S. interest rates. Robust labor market performance throughout the past year has consistently exceeded expectations, giving the Federal Reserve more flexibility in contemplating future rate cuts.

Minutes from the Fed’s December meeting revealed a cautious approach toward additional rate reductions, given persistent inflation and labor market strength. Officials also voiced concerns about inflation risks tied to protectionist and expansionary policies anticipated under President-elect Donald Trump. This policy uncertainty is expected to intensify ahead of his January 20 inauguration.

Other precious metals also saw gains on Friday. Platinum futures climbed 0.9% to $993.20 per ounce, while silver futures rose 0.5% to $31.16 per ounce by 00:12 ET (05:12 GMT).

Copper Rises Amid Chinese Stimulus Hopes

Industrial metal prices, particularly copper, gained on expectations that China would increase stimulus measures in 2025, following weak economic data from the world's largest copper importer.

Benchmark copper futures on the London Metal Exchange advanced 0.5% to $9,123.50 per ton, while March copper futures rose 0.5% to $4.3355 per pound.

Disappointing Chinese inflation data released on Thursday spurred speculation that Beijing may implement significant fiscal stimulus to boost private spending. Additionally, the potential for increased U.S. trade tariffs has raised expectations that China will step up measures to shield its economy, which has been grappling with years of sluggish growth.

China’s economic struggles have weighed heavily on copper prices, raising concerns about slowing demand in the country and its broader implications for the global economy.

 

 

 

 

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