Gold prices rose on Friday, capping a strong week driven by safe-haven demand amid ongoing U.S. trade policy uncertainty and caution ahead of the key nonfarm payrolls report.
The precious metal, along with other metals, also benefited from a weaker U.S. dollar, which hovered near two-year lows amid a lack of encouraging economic signals.
A sharp selloff on Wall Street—sparked by a public feud between President Donald Trump and Elon Musk—further heightened risk aversion, bolstering demand for gold.
As of 01:38 ET (05:38 GMT), spot gold rose 0.5% to $3,368.86 per ounce, while August gold futures increased 0.5% to $3,392.27 per ounce.
Trade and Geopolitical Tensions Support Gold
Despite President Trump highlighting a “very positive” phone call with Chinese President Xi Jinping—a move that could renew U.S.-China trade discussions—investors remained cautious. At the same time, escalating conflict between Russia and Ukraine continued to drive safe-haven flows into gold.
Gold Set for Weekly Gains as Payroll Report Looms
Gold was on track to gain roughly 2.4% this week, placing spot prices within $140 of their all-time highs. The metal remains supported by persistent uncertainty over the U.S. economic outlook and trade tariffs.
Markets are bracing for softer May nonfarm payrolls data, expected later Friday, after a week of disappointing labor indicators. These trends reflect growing economic unease tied to Trump’s tariff-focused agenda.
A weaker labor market could strengthen the case for the Federal Reserve to lower interest rates, contributing to this week’s dollar weakness. Trump has continued to pressure the Fed for rate cuts, although the central bank is still expected to hold rates steady at upcoming meetings.
Weaker Dollar Lifts Broader Metals Market
The broader metals complex also saw gains as the U.S. dollar declined 0.5% on the week, nearing its lowest level since April 2023.
- Platinum futures rose 1% to $1,154.00 per ounce
- Silver futures climbed 0.9% to $36.128 per ounce
- On the industrial side, London copper futures edged up 0.1% to $9,728.25 per ton, while U.S. copper futures gained 0.1% to $4.9150 per pound
