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HomeLatestGold Prices Rise, Head for Weekly Gains Amid Weak US Labor Data
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Gold Prices Rise, Head for Weekly Gains Amid Weak US Labor Data

Gold prices surged in Asian trade, with spot gold rising by 0.3% to $2,354.06 an ounce and gold futures for June delivery jumping by 0.9% to $2,360.75 an ounce by 00:53 ET (04:53 GMT). Spot prices are poised to add more than 2% for the week, marking their first positive week in three, albeit still below late-April record highs.

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The uptick in gold prices followed reports of a larger-than-expected increase in weekly U.S. jobless claims, reinforcing expectations of potential early interest rate cuts by the Federal Reserve due to a cooling labor market. Traders are now slightly increasing bets on a September rate cut, with expectations standing at nearly a 50% chance according to the CME Fedwatch tool. As a result, U.S. Treasury yields fell sharply on Thursday, alongside the dollar, contributing to stronger metal prices across the board.

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Platinum futures rose by 0.2% to $994.80 an ounce, while silver futures jumped by 1% to $28.657 an ounce, with both metals also trading up 3% and 7.4%, respectively, for the week. Industrial metal prices, including copper, were bolstered by weakness in the dollar. Three-month copper futures on the London Metal Exchange rose by 0.5% to $10,013.50 a ton, and one-month copper futures increased by 0.6% to $4.6327 a pound, both nearing recent two-year peaks.

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However, further momentum in copper prices faced resistance due to mixed signals from top importer China. While the country implemented more supportive policies for its property market, data indicating a drop in Chinese copper imports raised concerns about sustained demand. Moreover, reports of the U.S. considering additional trade tariffs on China also impacted sentiment towards the country.

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