Gold poised for weekly gain as investors await US payrolls data
Spot gold prices rose in early Asian trade on Friday ahead of the US non-farm payrolls report.
Gold prices increased during early Asian trade on Friday and are on track for a weekly gain of 5.9 per cent, according to the Economic Times.
Spot gold rose 0.4 per cent to $4,103.55 per ounce by 0023 GMT, while US gold futures for December delivery remained steady at $4,112.80. Investors are waiting for the US non-farm payrolls report, due at 1330 GMT, for information regarding the Federal Reserve's interest rate path.
Two Federal Reserve officials argued on Thursday for steady and modest interest rate increases to address inflation that is above target. This follows elections where Democrats won control of congress and made gains at the state level. Currently, the CME FedWatch tool indicates a 71 per cent chance of a rate hike in December.
Goldman Sachs reduced its end-2026 gold price prediction to $4,150 per ounce from $4,650 per ounce on Thursday, noting the impact of the more hawkish policy stance from the US Federal Reserve. Meanwhile, the Bank of England increased interest rates on Thursday and suggested another increase might occur if the US-Iran conflict persists.
In other metal markets, spot silver rose 0.5 per cent to $52.01 per ounce. Platinum was largely unchanged at $1,517.20 and palladium held steady at $1,031.01, with all three metals expected to finish the week with gains.
