Gold Soars to Best Week Since January Amid Weaker Oil Prices
Gold prices rose over 1% on Friday and are set for their best week since January, thanks to weaker oil prices. The metal has gained 6% this week alone, with spot gold hitting $4,285.89 per ounce by 0635 GMT.
The surge in gold comes as investors await key US nonfarm payrolls data for clues on the interest rate outlook. With inflation expectations lower due to hopes of peace in the Middle East, gold has surged from a multi-week consolidation above $4,000.
US President Donald Trump's comments that he believed the war with Iran would be over soon have also contributed to the rally. Lower energy prices help ease inflation concerns and reduce expectations of higher-for-longer interest rates.
'Regardless of how NFP plays out, $4,000 has proven to be a solid support level - and I suspect bulls are waiting for dips to take advantage of a much-needed correction higher towards $4,600,' said Matt Simpson, a senior analyst at StoneX.