Gold Prices Soar on Hopes of Peace and Lower Energy Costs

Gold prices continued their upward trend on Friday, nearing the best week since January. The precious metal rose nearly 3% to $4,356.28 an ounce, with spot gold futures gaining 0.3% to $4,312.00. This surge comes despite a mixed U.S. nonfarm payrolls report for July, which showed a 23,000-job contraction.

Analyst Matt Simpson of StoneX attributed the price increase to hopes of peace in the Middle East, which has led to decreased inflation expectations. Lower energy prices also contributed to gold's rise, as they ease concerns about inflation and higher interest rates.

The weekly gain for gold now stands at over 5%, with silver, platinum, and palladium also heading for gains. However, traders currently see a 55% chance of a U.S. rate hike in September, down from 63% the previous week.