Gold Trims Weekly Loss as Weak US Jobs Data Lifts Fed Rate-Cut Bets
Gold advanced on Friday, trimming its weekly decline as traders increased bets on monetary easing after a softer-than-expected U.S. jobs report.
U.S. employers unexpectedly cut jobs in February and the unemployment rate rose, signaling lingering fragility in a labor market that had been viewed as stabilizing. Following the data, traders now expect U.S. policymakers to cut rates by a total of 44 basis points by year-end, with the next move seen in September. That compares with 35 basis points priced in for the year before the report.
Bullion climbed as much as 1.5% to $5,159.04 an ounce, narrowing its weekly loss to about 2.3%. Lower interest rates typically support non-yielding gold by reducing the opportunity cost of holding the metal.
Gold had been under pressure earlier in the week as the Middle East conflict pushed oil prices higher, reigniting inflation concerns, while the U.S. dollar rallied. A stronger dollar and higher borrowing costs are usually headwinds for gold. Bullion also served as a source of liquidity during the deepening rout in global equities, with some investors selling metals positions to meet cash needs elsewhere.
In a social media post on Friday, U.S. President Donald Trump said he does not want to negotiate an end to the war with Iran and demanded Tehran’s capitulation as U.S. and Israeli airstrikes continued. The remarks suggested the White House may be bracing for a prolonged conflict after officials had previously insisted their goal was not regime change.
Even as trading has been choppy and upside momentum has stalled in recent days, gold is still up nearly 20% this year. Trump’s disruption of global trade and geopolitics, along with concerns over the Federal Reserve’s independence, has continued to support demand for safer assets.
Market snapshot (spot): Gold rose 1.4% to $5,152.01/oz as of 10:46 a.m. in New York. Silver climbed 2.5% to $84.33. Platinum advanced, while palladium was little changed.
Source : Newsmaker.id
