Gold Prices Inch Higher Amid Focus on U.S. Payroll Data and Geopolitical Tensions
Gold prices rose modestly in Asian trading on Friday as investors awaited key U.S. payroll data for insights on future interest rate trends. Geopolitical uncertainties also bolstered demand for the safe-haven metal.
The yellow metal appeared set for a quiet end to the week, facing pressure from lingering uncertainty over the long-term trajectory of interest rates. A resilient U.S. dollar further weighed on the broader metals market.
Market Performance
Spot gold gained 0.4% to trade at $2,642.03 per ounce, while February gold futures climbed 0.6% to $2,663.72 per ounce as of 22:59 ET (03:59 GMT).
Geopolitical Developments Support Safe-Haven Demand
Geopolitical tensions continued to provide support for gold. The collapse of France’s government and a failed attempt to impose martial law in South Korea added to the sense of unease. Persistent conflicts in the Middle East and heightened tensions between Russia and Ukraine also kept safe-haven demand intact.
Nonfarm Payrolls Take Center Stage
Investors were closely watching the upcoming November nonfarm payrolls report, set to release later on Friday. The data is expected to reveal a strong rebound in payroll growth from October, when hurricane-related disruptions impacted the labor market.
The report is likely to influence expectations for future interest rate cuts. A robust labor market could reduce the Federal Reserve’s urgency to lower rates.
This data comes just weeks before the Fed’s final meeting of the year, where a 25 basis point rate cut is anticipated. However, recent remarks from Fed officials and the possibility of expansionary policies under incoming President Donald Trump have cast doubt on the longer-term outlook for interest rates.Powell Highlights Economic Strength, Hints at Rate Cut Flexibility
Federal Reserve Chair Jerome Powell recently pointed to the resilience of the U.S. economy, noting that this strength provides the central bank with more flexibility to consider further rate cuts.
However, the prospect of higher-for-longer interest rates continues to weigh on gold and other non-yielding assets, as such rates increase their opportunity cost.
Precious Metals Post Modest Gains Amid November Weakness
Other precious metals edged higher on Friday but remained under pressure from losses sustained throughout November. Platinum futures rose 0.7% to $951.55 per ounce, while silver futures gained 1.3% to $31.935 per ounce.
Copper Supported by Tight Supply Concerns, China Data in Focus
Industrial metals saw a boost, with copper prices climbing on reports of tight supply. Major copper producers, including Chile’s Antofagasta (LON:ANTO) and China’s Jiangxi Copper, reportedly agreed to significantly lower processing fees for 2025 due to reduced availability of copper concentrate in spot markets.
Benchmark copper futures on the London Metal Exchange gained 0.5% to $9,136.0 per ton, while February copper futures rose 0.6% to $4.2235 per pound.
Looking ahead, traders are eyeing key economic indicators from China, the world’s largest copper importer. Scheduled releases next week include inflation and trade data, alongside the Central Economic Work Conference, which could provide further insights into China’s economic outlook and potential stimulus measures.
