Gold prices rose on Friday, hovering near record-high levels and set for a sixth successive weekly gain, as trade war concerns fuelled safe-haven buying ahead of the key U.S. payrolls report.
Spot gold was up 0.4% at $2,867.69 per ounce, as of 0250 GMT, and has gained more than 2% this week. Bullion hit an all-time high at $2,882.16 on Wednesday. U.S. gold futures gained 0.5% to $2,889.80.
“It’s still a trending market and we will continue to see gold prices pushing to newer heights because now it’s uncharted territory,” said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.
Earlier this week, the World Trade Organization said China initiated a dispute over the U.S. tariffs.
Goldman Sachs said they see upside risk to their $3,000 target from a potentially persistent boost from elevated U.S. policy uncertainty to central bank and investor hedging demand.
Focus now shifts to the U.S. employment report, due at 1330 GMT, which investors will scan for any hints on the U.S. interest rate cycle.
A full-employment economy with solid growth and falling inflation will let the Federal Reserve continue cutting rates, though uncertainty about the impact of tariffs and other policy changes argues for a slower approach, Chicago Federal Reserve 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.
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However, “we expect the Fed will be cutting another 100 basis point this cycle. This will see U.S. Treasury yields falling … reducing the holding cost for gold,” ANZ noted.
Spot silver added 0.2% to $32.26 per ounce and platinum increased 0.6% to $991.10, while palladium shed 0.2% to $976.25.
Both silver and platinum were seen rising this week, while palladium was headed for a weekly loss.
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