Gold prices steadied on Friday, hovering near record highs, and were on track for a sixth consecutive weekly gain as escalating trade tensions fueled safe-haven demand. Investors awaited the release of U.S. non-farm payrolls data for further insights into the country's economic health.
Market Performance
- Spot gold edged up 0.1% to $2,859.59 per ounce as of 0038 GMT, gaining over 2% this week. The metal hit an all-time high of $2,882.16 earlier in the week.
- U.S. gold futures rose 0.3% to $2,884.20.
Gold had reached record highs for five straight sessions, driven by escalating U.S.-China trade tensions. However, prices pulled back 1% in the previous session as the dollar strengthened ahead of the U.S. jobs report.
Key Economic Indicators
- The U.S. employment report, due at 1330 GMT, is expected to provide crucial signals on economic strength.
- Chicago Fed President Austan Goolsbee stated on Thursday that a robust economy with solid growth and easing inflation could allow the Federal Reserve to continue cutting interest rates, though policy uncertainty may warrant a cautious approach.
- While gold is traditionally a safe-haven asset during economic and geopolitical uncertainty, higher interest rates tend to reduce its appeal.
Outlook & Market Trends
- Goldman Sachs reaffirmed its forecast for gold to reach $3,000 per ounce by Q2 2026, despite anticipating a temporary pullback if U.S. tariff concerns ease and market positioning normalizes.
- The Bank of England’s gold reserves have declined by approximately 2% since late 2023, Deputy Governor Dave Ramsden noted, attributing the decrease to strong demand for stored gold amid international price differentials.
Other Precious Metals
- Silver rose 0.1% to $32.24 per ounce.
- Platinum gained 0.2% to $987.38.
- Palladium remained flat at $978.63.
Silver and platinum were poised for weekly gains, while palladium was on track for a weekly decline.
Upcoming Economic Data (GMT)
- 0700 – Germany Industrial Output (Dec)
- 0700 – UK Halifax House Prices (Jan)
- 0745 – France Reserve Assets (Dec)
- 1330 – U.S. Non-Farm Payrolls (Jan)
- 1330 – U.S. Unemployment Rate (Jan)
- 1330 – U.S. Average Earnings (Jan)
- 1500 – U.S. Michigan Consumer Sentiment (Feb, Preliminary)