Gold Prices Hold Near Record Highs, Set for Sixth Weekly Gain Amid Trade War Jitters
Gold prices steadied on Friday, hovering near record highs, and were on track for a sixth consecutive weekly gain as escalating trade tensions fueled safe-haven demand. Investors awaited the release of U.S. non-farm payrolls data for further insights into the country's economic health. Market Performance Spot gold edged up 0.1% to $2,859.59 per ounce as of 0038 GMT, gaining over 2% this week. The metal hit an all-time high of $2,882.16 earlier in the week.
edged up 0.1% to $2,859.59 per ounce as of 0038 GMT, gaining over 2% this week. The metal hit an all-time high of $2,882.16 earlier in the week. U.S. gold futures rose 0.3% to $2,884.20.
Gold had reached record highs for five straight sessions, driven by escalating U.S.-China trade tensions. However, prices pulled back 1% in the previous session as the dollar strengthened ahead of the U.S. jobs report. Key Economic Indicators The U.S. employment report, due at 1330 GMT, is expected to provide crucial signals on economic strength.
Chicago Fed President Austan Goolsbee stated on Thursday that a robust economy with solid growth and easing inflation could allow the Federal Reserve to continue cutting interest rates, though policy uncertainty may warrant a cautious approach.
While gold is traditionally a safe-haven asset during economic and geopolitical uncertainty, higher interest rates tend to reduce its appeal. Outlook & Market Trends Goldman Sachs reaffirmed its forecast for gold to reach $3,000 per ounce by Q2 2026, despite anticipating a temporary pullback if U.S. tariff concerns ease and market positioning normalizes.
reaffirmed its forecast for gold to reach $3,000 per ounce by Q2 2026, despite anticipating a temporary pullback if U.S. tariff concerns ease and market positioning normalizes. The Bank of England's gold reserves have declined by approximately 2% since late 2023, Deputy Governor Dave Ramsden noted, attributing the decrease to strong demand for stored gold amid international price differentials. Other Precious Metals Silver rose 0.1% to $32.24 per ounce.
rose 0.1% to $32.24 per ounce. Platinum gained 0.2% to $987.38.
gained 0.2% to $987.38. Palladium remained flat at $978.63.
Silver and platinum were poised for weekly gains, while palladium was on track for a weekly decline. Upcoming Economic Data (GMT) 0700 – Germany Industrial Output (Dec)
– Germany Industrial Output (Dec) 0700 – UK Halifax House Prices (Jan)
– UK Halifax House Prices (Jan) 0745 – France Reserve Assets (Dec)
– France Reserve Assets (Dec) 1330 – U.S. Non-Farm Payrolls (Jan)
– U.S. Non-Farm Payrolls (Jan) 1330 – U.S. Unemployment Rate (Jan)
– U.S. Unemployment Rate (Jan) 1330 – U.S. Average Earnings (Jan)
– U.S. Average Earnings (Jan) 1500 – U.S. Michigan Consumer Sentiment (Feb, Preliminary)
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