Gold Prices Surge as Oil Falls and NFP Data Looms
Gold prices surged on Friday, poised to secure their biggest weekly gain since January. The precious metal has been bolstered by weaker oil prices, which have eased inflation concerns and reduced expectations of higher interest rates.
The US nonfarm payrolls data, due out at 1230 GMT, is a key factor investors are watching for clues on the interest rate outlook. However, Matt Simpson, a senior analyst at StoneX, notes that regardless of how the data plays out, gold has proven to be a solid support level.
Spot gold was up 0.6 per cent at US$4,262.39 per ounce as of 0421 GMT, while US gold futures gained 0.5 per cent to US$4,321.50. This marks the metal's highest price in seven weeks and a gain of over 5 per cent for the week.
US President Donald Trump's statements on the war with Iran have also had an impact on inflation expectations, which has allowed gold to surge higher from its multi-week consolidation above US$4,000. Simpson added that 'price action has spoken, and gold looks like it wants to rally.'