Gold Poised for Weekly Gain, Market Awaits US NFP
Gold prices rose on Friday (May 8) and were on track for a weekly gain as investors balanced optimism over a potential US-Iran peace deal with caution regarding the fragile ceasefire, ahead of the release of US jobs data.
Spot gold rose 0.7% to US$4,717.47 per ounce, while US gold futures gained 0.4% to US$4,727.56. Bullion has gained nearly 2% this week after rebounding from a one-month low in early May.
Market attention remains focused on Middle East dynamics after US and Iranian forces exchanged fire on Thursday near the Strait of Hormuz, the most serious violation since the ceasefire took effect about a month ago. Iran stated that conditions in the affected coastal areas were returning to normal, while President Donald Trump said the ceasefire was still in effect. Amid the uncertainty, gold maintained its appeal as a safe-haven asset, while also benefiting from cooling oil prices from their peaks, which eased inflation concerns.
From a fundamental transmission perspective, easing inflationary pressures have the potential to reduce expectations of prolonged high interest rates, thus supporting demand for non-yielding gold. A slight weakening of the US dollar midweek also helped support prices, although the dollar index only moved around 0.1% in the Asian session after ending relatively flat in volatile trading.
Market participants tend to hold large positions ahead of the US non-farm payrolls report, which could reshape Fed policy expectations. Consensus estimates payroll growth of 65,000 with the unemployment rate stable at 4.3%; a significantly weaker figure could potentially strengthen speculation of interest rate cuts and act as a catalyst for gold.
Outside of gold, spot silver rose 2.1% to US$80.11 per ounce and platinum rose 1.4% to US$2,053.60, while copper also gained limited ground on the LME and US markets.
Source: Newsmaker.id
