Gold Hits Seven-Week High as Peace Hopes Boost Inflation Fears
Gold prices surged to a seven-week high on Thursday before the highly anticipated US nonfarm payrolls report, which is due out later today. The metal rose more than 1% and was poised for its biggest weekly gain since January, helped by weaker oil prices.
The spot gold price was up 1.1% at $4,285.89 per ounce, while U.S. gold futures also gained 1.1% to $4,344.90. Analysts attribute the rise in gold prices to hopes of peace in the Middle East, which has pushed inflation expectations lower and reduced the likelihood of higher interest rates.
According to Matt Simpson, a senior analyst at StoneX, 'Regardless of how NFP plays out, $4,000 has proven to be a solid support level - and I suspect bulls are waiting for dips to take advantage of a much-needed correction higher towards $4,600. NFP may provide some noise over the near term, but price action has spoken, and gold looks like it wants to rally.'
Meanwhile, silver prices are testing the upper end of their trading range and could potentially break out towards $68, according to a note from Marex.