Gold Edges Higher as Geopolitical Risks Support Safe-Haven Demand
Despite a stronger dollar and higher US Treasury yields, gold prices edged up on Friday as traders assessed the impact of the US labor market's signal. The European Central Bank's decision to hold interest rates was also factored in.
Silver prices rose even more sharply, gaining 1.35% to trade near $58.31 an ounce. Spot gold, however, traded at a relatively modest 0.16% increase, reaching $4,055.00 per ounce.
Market positioning after the latest economic data release was seen as less dovish than initially suggested by softer consumer and producer inflation readings. The ECB kept its deposit rate unchanged at 2.25%, while the main refinancing rate remained at 2.40% and the marginal lending rate at 2.65%
The geopolitical situation, particularly around the Strait of Hormuz, continued to provide support for gold as a safe-haven asset.