Gold prices edged higher in Friday’s early Asian trading, remaining close to record highs as investors positioned for potential U.S. interest rate cuts. The spotlight is on the upcoming nonfarm payrolls release, which could further influence rate expectations.
Spot gold increased 0.4% to $3,559.82 an ounce, while December futures added 0.3% to $3,617.87/oz as of 01:04 ET (05:04 GMT). Earlier this week, spot gold reached an all-time peak of $3,578.80/oz. Broader metal markets also advanced, aided by a softer U.S. dollar amid growing anticipation of a September rate reduction.
Weekly Gains Continue for Gold
Gold is on track for a 3.2% gain this week, marking a third consecutive week of upward momentum. Rising expectations for a Fed rate cut have supported prices, alongside a surge in safe-haven demand fueled by concerns over high government debt in developed economies and uncertainty over U.S. economic policy, including tariffs and the Fed’s independence.
Recent comments from Federal Reserve officials suggest the central bank may lower rates if labor market indicators continue to weaken. Earlier this week, U.S. jobless claims and job openings both came in below expectations, pushing traders to anticipate a September reduction. CME FedWatch currently shows a greater than 96% probability of a 25-basis-point cut at the September 16-17 meeting.
Broader Metals Also Benefit
Other precious and industrial metals gained ground on Friday. Spot platinum rose 0.6% to $1,383.20/oz, up 1.1% for the week, while silver climbed 0.5% to $40.8615/oz, rising nearly 3% week-to-date.
Copper futures followed suit, with London Metal Exchange contracts up 0.7% to $9,957.05 per ton and COMEX copper gaining 0.6% to $4.5932 per pound.
The upcoming U.S. nonfarm payrolls report, due at 08:30 ET (12:30 GMT), is expected to show continued weakness in job growth. Analysts say a soft reading could further tilt the Fed toward easing in September. Lower interest rates typically support non-yielding assets like gold and other metals by reducing the opportunity cost relative to government bonds.
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