Gold held near recent levels in Asian trade on Friday as investors remained cautious ahead of key US employment figures due later in the session, while the metal continued to track for a weekly advance supported by geopolitical risk, particularly tensions between the US and Venezuela. Spot gold was largely flat around $4,474 an ounce in early trading, with US gold futures slightly lower. The metal was poised to deliver a rise of over 3% for the week after strong gains earlier in the session following heightened geopolitical risk related to the US operation in Venezuela and the capture of President Nicolas Maduro.
Dollar strength and jobs data in focus
A firmer US dollar, which recently touched the highest level in about a month, kept some pressure on gold by making it more expensive for holders of other currencies. Markets are awaiting the US nonfarm payrolls report, which could offer fresh insight into the health of the labour market and guide expectations around the Federal Reserve’s policy direction, particularly the timing and extent of any future rate cuts. Traders have increasingly factored in the likelihood of two additional US interest rate reductions in 2026 following the Fed’s December cut. Lower interest rates typically boost gold’s appeal because the metal does not yield interest and tends to compete more favourably when borrowing costs decline.
Geopolitical pressures underpin safe-haven demand
Lingering geopolitical tensions stemming from US–Venezuela developments have continued to support demand for safe-haven assets. Although prices consolidated after the early-week surge, the risk of a prolonged standoff continues to underpin bullion as a defensive trade, especially with political and military developments remaining in focus.
Other metals also rise
Precious and industrial metals mostly moved higher on Friday. Silver edged up, and platinum also saw gains. Palladium recorded a notable increase, while copper futures on both the London Metal Exchange and in the US rallied, signalling broader strength across metal markets.