Gold prices were on track for their most impressive weekly performance since October 2023, hovering near record highs on Friday. This positive outlook comes ahead of the crucial US nonfarm payrolls report, scheduled for release later that day.
Investor sentiment shifted towards gold after Federal Reserve Chair Jerome Powell's comments bolstered expectations of an interest rate cut by mid-2024. The prospect of lower interest rates typically benefits gold, as it makes the non-interest-bearing metal a more attractive investment compared to interest-bearing bonds.
Spot gold prices remained relatively unchanged at $2,157.16 per ounce, staying close to the all-time high of $2,164.09 reached on the previous trading day. US gold futures mirrored this stability, trading flat at $2,164.40.
While gold dominated the spotlight, other precious metals also experienced a positive week. Spot platinum was down marginally by 0.3% at $916.30 per ounce, but still on course for a weekly gain. Silver prices displayed similar resilience, dipping slightly by 0.1% to $24.29 per ounce while anticipating a weekly increase. Palladium, on the other hand, defied the minor downward trend, rising 0.5% to $1,039.17 per ounce and poised for a positive week.
The upcoming US jobs report holds significant weight for the gold market. A strong showing in job growth could indicate a robust US economy, potentially prompting the Federal Reserve to reconsider its dovish stance on interest rates. This, in turn, could dampen the appeal of gold. Conversely, a weaker-than-expected report on job creation might suggest a softening economy, reinforcing expectations of a rate cut and potentially propelling gold prices even higher.
Market analysts are keenly awaiting the release of the jobs data, anticipating its influence on the future trajectory of gold prices. Geopolitical tensions and ongoing global economic uncertainties are additional factors that could impact gold's performance in the coming weeks. With these elements in play, the gold market is likely to remain highly volatile in the near future.