Gold heads for best week since January, US jobs data in focus
Spot gold is up 1.1% at US$4,285.89 per ounce by 0635 GMT
Add BT as a preferred source
[BENGALURU] Gold rose more than 1 per cent on Friday (Aug 7) and was set for its biggest weekly gain since January, helped by weaker oil prices, while investors awaited key US nonfarm payrolls (NFP) data for clues on the interest rate outlook.
Spot gold was up 1.1 per cent at US$4,285.89 per ounce, by 0635 GMT, after hitting a seven-week high on Thursday. Prices gained 6 per cent for the week.
US gold futures rose 1.1 per cent to US$4,344.90.
Hopes of peace in the Middle East pushed inflation expectations lower, allowing gold to surge from a multi-week consolidation above US$4,000, said Matt Simpson, a senior analyst at StoneX.
US President Donald Trump told reporters that he believed the war with Iran would be over soon.
Crude oil prices were headed for a weekly loss. Lower energy prices help ease inflation concerns and reduce expectations of higher-for-longer interest rates.
Gold is an inflation hedge, but elevated interest rates tend to weigh on its appeal as it offers no yield.
The US Labour Department’s NFP report for July is due at 1230 GMT.
“Regardless of how NFP plays out, US$4,000 has proven to be a solid support level – and I suspect bulls are waiting for dips to take advantage of a much-needed correction higher towards US$4,600. NFP may provide some noise over the near term, but price action has spoken, and gold looks like it wants to rally,” Simpson added.
Traders currently see a 55 per cent chance of a US rate hike in September, according to the CME FedWatch Tool.
“Going into August, we are somewhat friendlier towards gold and expect a wider trading band to set in,” Marex said in a note.
Silver prices are testing the upper end of a trading range that has held for nearly two months, and a breakout could pave the way towards US$68, it said.
Spot silver climbed 3.3 per cent to US$63.48, platinum rose 1.5 per cent to US$1,755.90 and palladium gained 0.3 per cent to US$1,374.30. All three metals were headed for weekly gains. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
