Gold Prices Surge as Oil Falls and Peace Hopes Rise

Gold prices are on track for their biggest weekly gain since January due to weaker oil prices and hopes of peace in the Middle East, despite investors awaiting key US nonfarm payrolls data for clues on interest rate outlook.

The spot gold price rose 0.4% to $4,254.11 per ounce as of 0156 GMT after hitting a seven-week high in the previous session, with prices up over 5% for the week.

US gold futures gained 0.3% to $4,312.00, while spot silver added 0.8% to $61.96 per ounce, platinum rose 0.4% to $1,735.71, and palladium dropped 0.3% to $1,367.06.

According to Matt Simpson, a senior analyst at StoneX, inflation expectations have dropped due to hopes of peace in the Middle East, allowing gold to surge higher from a multi-week consolidation above $4,000.