Gold Prices Rise as Economic Uncertainty Builds, Dollar Dips Ahead of Payrolls
Gold prices rose on Friday and were headed for a positive week as haven demand was underpinned by uncertainty over U.S. trade policy and caution before a key U.S. payrolls reading.
Bullion, along with broader metal prices, also benefited from a softer dollar, which languished near two-year lows amid few positive cues over the U.S. economy.
A sharp sell-down on Wall Street, which was triggered by an escalated, public feud between President Donald Trump and billionaire Elon Musk, also boosted risk appetite.
Spot gold rose 0.5% to $3,368.86 an ounce, while gold futures for August rose 0.5% to $3,392.27/oz by 01:38 ET (05:38 GMT).
Trump’s flagging of a positive call with Chinese President Xi Jinping, which could revitalize U.S.-China trade talks, also did little to deter risk aversion, while increased military action between Russia and Ukraine also boosted haven demand.
Gold buoyed by haven demand as nonfarm payrolls approach
Gold was set to gain about 2.4% this week, with spot prices now about $140 away from recent record highs.
Demand for the yellow metal remained underpinned by heightened uncertainty over the U.S. economy and trade tariffs.
Nonfarm payrolls data due later on Friday is expected to read softer for May, especially following a string of weak labor market readings through the week. U.S. hiring trends were dented by increased uncertainty over economic policy under Trump, especially his tariff agenda.
A softer labor market is expected to give the Federal Reserve more impetus to cut interest rates, a notion that weighed on the dollar this week. Trump also reiterated his demands that the Fed cut interest rates soon.
Still, the central bank is still expected to leave rates unchanged when it meets later this year.
Metal prices advance as dollar stalls near 2-yr low
Broader metal prices largely benefited from a weaker dollar, and were set for weekly gains. The greenback was trading down 0.5% this week and was close to a two-year low hit in April.
Platinum futures rose 1% to $1,154.0/oz, while silver futures rose 0.9% to $36.128/oz.
Source: Investing.com
