Gold Sees Best Weekly Gain Since January Amid Weaker Oil Prices
Gold prices continued their upward trend on Friday and are poised for their best weekly gain since January. The precious metal rose by 0.6% to $4,262.39 per ounce, with US gold futures also gaining 0.5% to $4,321.50.
The surge in gold prices comes as investors await key US nonfarm payrolls data for clues on the interest rate outlook. Weaker oil prices are also contributing to the increase in gold prices, which tend to rise when energy costs drop.
According to Matt Simpson, a senior analyst at StoneX, hopes of peace in the Middle East led to decreased inflation expectations, allowing gold to break through its recent consolidation above $4,000. Simpson believes that gold will continue to rally, potentially reaching $4,600, despite any near-term noise from the NFP report.
The US Labor Department's nonfarm payrolls report for July is due at 1230 GMT on Friday and may influence market expectations of interest rate hikes. Currently, traders see a 55% chance of a US rate hike in September, down from 63% a week ago.