Gold prices rose in early Asian trading on Friday, hovering near recent highs as investors increased bets on potential U.S. interest rate cuts. Market attention is focused on the upcoming nonfarm payrolls report, which could reinforce expectations of lower rates.
Spot gold advanced 0.4% to $3,559.82 an ounce, while December gold futures gained 0.3% to $3,617.87/oz by 01:04 ET (05:04 GMT). Earlier this week, spot prices touched a record $3,578.80/oz. Broader metal prices also moved higher, reflecting a weaker U.S. dollar amid growing confidence in a September rate reduction.
Gold Set for Third Consecutive Week of Gains
Gold is on track to rise about 3.2% this week, marking its third straight week of solid gains. Investor optimism about a September rate cut has been a key driver, alongside heightened safe-haven demand triggered by concerns over elevated government debt in developed nations and uncertainties surrounding the U.S. economy, including trade tariffs and the Fed’s independence.
Several Federal Reserve officials signaled this week that the central bank may be open to cutting rates in response to a cooling labor market. Recent data on jobless claims and job openings came in weaker than expected, prompting traders to increase expectations for a September rate reduction. CME FedWatch shows markets pricing in a more than 96% probability of a 25-basis-point cut at the September 16-17 meeting.
Industrial Metals Also Rise Ahead of Payrolls
Other metals followed gold’s upward trajectory. Spot platinum climbed 0.6% to $1,383.20/oz, gaining 1.1% for the week. Spot silver rose 0.5% to $40.8615/oz, up nearly 3% for the week.
Among industrial metals, London Metal Exchange copper futures increased 0.7% to $9,957.05 per ton, while COMEX copper rose 0.6% to $4.5932 per pound.
Investors are closely watching the U.S. nonfarm payrolls report, due at 08:30 ET (12:30 GMT), which is expected to show continued weak job growth in August. A soft reading could further support market expectations for a Fed rate cut in September. Lower interest rates generally benefit non-yielding assets such as gold and other metals, as the opportunity cost of holding them versus government bonds decreases.
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