Gold prices steadied on Friday near record-high levels, and were headed to log their sixth successive weekly gain, as trade war jitters lifted safe-haven demand, while investors awaited the non-farm payrolls data for cues on the U.S. economic health.
FUNDAMENTALS
* Spot gold was up 0.1% at $2,859.59 per ounce, as of 0038 GMT, and has gained more than 2% so far this week. Bullion hit an all-time high at $2,882.16 earlier this week.
* U.S. gold futures added 0.3% to $2,884.20.
* Despite touching record highs for five consecutive sessions due to the escalating U.S.-China trade tensions, gold prices retreated 1% in the previous session as the dollar strengthened ahead of the U.S. jobs report. * Focus now shifts to the U.S. employment report, due at 1330 GMT, which is expected to offer more clues about the economy’s overall strength.
* A full-employment economy with solid growth and falling inflation will let the U.S. Federal Reserve continue cutting interest rates, though uncertainty about the impact of tariffs and other policy changes argues for a slower approach, Chicago Fed President Austan Goolsbee said on Thursday.
* Gold is considered a safe investment during economic and geopolitical turmoil, but higher interest rates reduce the non-yielding asset’s appeal.
* Goldman Sachs on Thursday upheld its gold price forecast of $3,000 per ounce by Q2 2026, despite anticipating a temporary drop if U.S. tariff uncertainty diminishes and market positioning normalizes.
* Meanwhile, the stock of gold at the Bank of England has fallen by about 2% since the end of last year, Deputy Governor Dave Ramsden said, citing strong demand for gold stored at the bank to take advantage of international price differentials.
* Spot silver added 0.1% to $32.24 per ounce, platinum edged 0.2% higher to $987.38, and palladium was flat at $978.63.
* Both silver and platinum were seen rising this week, while palladium was headed for a weekly loss.
DATA/EVENTS (GMT) 0700 Germany Industrial Output MM, Industrial Production YY SA Dec 0700 UK Halifax House Prices MM, Halifax House Prices YY Jan 0745 France Reserve Assets Total Dec 1330 US Non-Farm Payrolls Jan 1330 US Unemployment Rate Jan 1330 US Average Earnings YY Jan 1500 US U Mich Sentiment Prelim Feb