Gold Soars to Seven-Week High as Oil Prices Plummet

Gold prices rose more than 1% on Friday and were set for their biggest weekly gain since January. The precious metal was boosted by weaker oil prices, which helped ease inflation concerns and reduce expectations of higher interest rates.

The US Labor Department's nonfarm payrolls (NFP) report for July is due at 1230 GMT, but analysts are divided on its impact on gold. Matt Simpson, a senior analyst at StoneX, believes that regardless of the NFP outcome, gold will continue to rally towards $4,600.

Spot gold was up 1.1% at $4,285.89 per ounce, while US gold futures rose 1.1% to $4,344.90. Silver prices were also on the rise, testing the upper end of a trading range that has held for nearly two months.

Analysts at Marex noted that going into August, they are somewhat friendlier towards gold and expect a wider trading band to set in.