Gold Holds Near Record High as Trump Worries Ahead of Jobs Report
Gold held steady near a record high ahead of a key U.S. jobs report, buoyed by geopolitical tensions and economic concerns.
A weak jobs report could raise expectations for further Federal Reserve interest rate cuts, which would benefit gold, while a stronger-than-expected number could have the opposite effect. Citigroup expects gold prices to hit $3,000 an ounce within three months, and traders in London are shifting the metal to the U.S., fearing potential tariffs.
Gold held steady near a record high ahead of a key U.S. jobs report, while rising geopolitical tensions and economic concerns continued to support demand for the safe-haven asset.
Bullion traded near $2,860 an ounce — and up more than 2% this week — ahead of Friday’s nonfarm payrolls data. A weak number could raise expectations for further Federal Reserve interest rate cuts, while a stronger-than-expected number could have the opposite effect. Lower borrowing costs tend to benefit gold, since it doesn’t pay interest. Gold Nears Record High Markets Await Key U.S. Jobs Data
The U.S.-China trade war and concerns that President Donald Trump will follow through on threats to impose tariffs on other countries, as well as his unconventional geopolitical position, are supporting gold’s role as a store of value in uncertain times. The bullion’s bullion market looks set to continue with prices likely to top $3,000 an ounce within three months, Citigroup Inc. said in a note.
The market is also trying to understand the potential implications for the U.S. economy and monetary policy if the new administration’s trade and immigration policies reignite inflation and hurt growth.
Trade war concerns have prompted traders in London to shift the metal to the U.S., fearing that bullion might not be exempt from potential tariffs. Bloomberg reported earlier that gold in Bank of England vaults was trading at a discount to the broader market, leading to weeks-long queues to withdraw the metal amid a scramble for supplies.
Spot gold rose 0.2% to about $2,863.23 an ounce at 1:48 p.m. in Singapore, after hitting an all-time high of $2,882.36 on Wednesday. The Bloomberg Dollar Spot Index rose 0.1%, and was down 0.7% for the week. Silver, platinum and palladium were flat.
Source: Bloomberg
