Gold prices rose in Asian trade on Friday, extending overnight gains as more signs of a cooling U.S. labor market weighed on the dollar and Treasury yields, benefiting prices of the yellow metal.
Bullion prices were now set to break a two-week losing spree, as some safe haven demand also remained in play amid bets that Israel and Hamas will not reach a ceasefire deal. Reports of fresh U.S. trade tariffs on China also sparked some safe haven demand.
Spot gold rose 0.3% to $2,354.06 an ounce, while gold futures expiring in June jumped 0.9% to $2,360.75 an ounce by 00:53 ET (04:53 GMT).
Gold prices head for weekly gains amid some rate cut hopes
Spot prices were set to add more than 2% this week- their first positive week in three. But they still remained well below record highs hit in late-April.
The yellow metal surged on Thursday after data showed a bigger-than-expected increase in weekly U.S. jobless claims. The reading came just after a substantially softer-than-expected nonfarm payrolls reading for April, and reinforced expectations that a cooling labor market will push the Fed into cutting interest rates early.
Traders were seen slightly increasing bets on a September rate cut, expectations of which currently stand at a nearly 50% chance, according to the CME Fedwatch tool.
U.S. Treasury yields fell sharply on Thursday, as did the dollar, factoring into stronger metal prices across the board.
