Gold prices steady with nonfarm payrolls in focus

Gold prices rose slightly in Asian trade on Friday and were headed for some weekly gains as heightened uncertainty over U.S. interest rates and trade tariffs fueled increased safe haven demand.

But strength in the dollar, ahead of a key labor market report due later in the day, limited any major upside in gold, as did hawkish signals from the Federal Reserve. 

Spot gold rose 0.1% to $2,672.12 an ounce, while gold futures expiring in February rose 0.2% to $2,695.74 an ounce by 23:58 ET (04:58 GMT).  Gold heads for weekly gains as rate, trade jitters spur some haven demand

Spot prices were trading up about 1.5% this week, as increased economic uncertainty spurred some safe haven demand for the yellow metal.

Markets were on edge ahead of nonfarm payrolls data for December, due later on Friday, which is likely to factor into the outlook for U.S. rates. 

Payrolls data has consistently beaten expectations over the past year, amid continued resilience in the labor market. This trend gives the Fed more headroom to consider future rate cuts. 

The minutes of the central bank’s December meeting showed this week that policymakers were cautious over cutting interest rates further, amid sticky inflation and signs of resilience in the labor market. 

Fed officials were also seen expressing some concerns over inflationary pressures from protectionist and expansionary policies under President-elect Donald Trump. Uncertainty over his plans is expected to build ahead of his inauguration on January 20. 

Other precious metals rose on Friday. Platinum futures rose 0.9% to $993.20 an ounce, while silver futures rose 0.5% to $31.160 an ounce by 00:12 ET (05:12 GMT).  Copper upbeat on China stimulus hopes 

Among industrial metals, copper prices extended gains as weak economic readings from top importer China continued to spur bets that Beijing will substantially increase its stimulus efforts in 2025.

Benchmark copper futures on the London Metal Exchange rose 0.5% to $9,123.50 a ton, while March copper futures rose 0.5% to $4.3355 a pound. 

Weak Chinese inflation data released on Thursday sparked bets that Beijing will be pushed into unlocking more stimulus, especially fiscal measures aimed at shoring up private spending.

The threat of increased U.S. trade tariffs is also expected to push Beijing into doling out more stimulus to protect the Chinese economy, which is already grappling with years of languid growth.

China is the world’s biggest copper importer, and has been a major weight on copper prices amid concerns that demand in the country will slow due to economic strife.

Source: Investing.com