Gold Edges Higher in Asian Trade, Set for Weekly Gains on Rate and Trade Concerns
Gold prices inched up during Asian trading on Friday, poised for weekly gains as uncertainty over U.S. interest rates and trade policies bolstered safe-haven demand.
However, a strong dollar ahead of a key U.S. labor market report limited gold’s upside, along with hawkish signals from the Federal Reserve.
Spot gold rose 0.1% to $2,672.12 per ounce, while gold futures for February delivery gained 0.2% to $2,695.74 per ounce by 23:58 ET (04:58 GMT).
Weekly Gains Driven by Safe-Haven Demand
Gold prices were up approximately 1.5% for the week, supported by heightened economic uncertainty that drove investors toward the safe-haven asset.
Markets are closely watching December’s nonfarm payrolls report, set to be released later on Friday. The data could influence the Federal Reserve’s interest rate outlook.
U.S. payroll figures have consistently exceeded expectations over the past year, reflecting resilience in the labor market. This strength provides the Fed with room to consider future rate cuts.
Minutes from the Fed’s December meeting, released earlier this week, revealed a cautious stance on further rate reductions, citing persistent inflation and labor market resilience.
Fed officials also voiced concerns about inflationary pressures stemming from protectionist and expansionary policies under President-elect Donald Trump. Uncertainty around his economic agenda is expected to intensify ahead of his inauguration on January 20.
Other Precious Metals Gain
Platinum futures rose 0.9% to $993.20 per ounce, while silver futures advanced 0.5% to $31.16 per ounce by 00:12 ET (05:12 GMT).
Copper Rises on China Stimulus Optimism
In industrial metals, copper prices extended gains as weak economic data from China spurred expectations of increased stimulus measures from Beijing in 2025.
Benchmark copper futures on the London Metal Exchange rose 0.5% to $9,123.50 per ton, while March copper futures climbed 0.5% to $4.3355 per pound.
Thursday’s weak Chinese inflation data fueled bets on substantial fiscal stimulus aimed at boosting private consumption.
The prospect of additional U.S. trade tariffs is also expected to push Beijing toward more stimulus to safeguard its economy, which continues to struggle with slow growth.
As the world’s largest copper importer, China’s economic challenges have weighed on copper prices, raising concerns about slowing demand from the country.
