Gold Prices Rise Amid Dollar Weakness and Geopolitical Tensions
Gold Prices Extend Gains in Asian Trade
In Asian trade on Friday, gold prices continued their upward trajectory, building on overnight gains. This surge comes as more signs of a cooling U.S. labor market put pressure on the dollar and Treasury yields, ultimately benefiting the prices of the yellow metal.
Bullion Prices Set to Break Two-Week Losing Streak
After enduring a two-week losing streak, bullion prices are now poised to break free from their downward trend. Safe haven demand remains in play, fueled by uncertainty surrounding the potential for a ceasefire between Israel and Hamas. Additionally, reports of fresh U.S. trade tariffs on China have sparked further safe haven demand.
Spot Gold and Gold Futures Show Strong Performance
Spot gold rose by 0.3% to $2,354.06 an ounce, while gold futures expiring in June surged by 0.9% to $2,360.75 an ounce by 00:53 ET (04:53 GMT). These gains reflect a positive outlook for gold prices heading into the weekend.
Gold Prices Head for Weekly Gains Amid Rate Cut Hopes
Spot prices are on track to record gains of over 2% for the week, marking their first positive week in three. While still below record highs reached in late April, gold prices have seen significant support this week. Thursday's surge in gold prices followed a larger-than-expected increase in weekly U.S. jobless claims, reinforcing expectations of a cooling labor market and potential early rate cuts by the Fed.
Platinum and Silver Futures Also Show Strength
Platinum futures rose by 0.2% to $994.80 an ounce, while silver futures jumped by 1% to $28.657 an ounce. Both metals are also showing weekly gains, up 3% and 7.4%, respectively.
Copper Prices Near 2-Year Highs, But Face Challenges
Despite near two-year highs, copper prices faced challenges due to mixed signals from China. While the country rolled out supportive policies for its property market, a drop in Chinese copper imports raised concerns about future demand. Additionally, reports of the U.S. considering more trade tariffs on China have further dampened sentiment towards the country.
Market Outlook
Overall, gold prices are buoyed by a combination of factors including dollar weakness, geopolitical tensions, and expectations of potential rate cuts by the Fed. Investors will continue to monitor these developments closely as they navigate the evolving landscape of the global economy and financial markets.
