As rising demand for safe haven assets was spurred by
increased uncertainty surrounding U.S. interest rates and trade tariffs, gold
prices gained somewhat in Asian trade on Friday and were on track for some
weekly gains.
However, hawkish hints from the Federal Reserve and dollar
strength ahead of a crucial labor market report later in the day restricted any
significant gold upside.
At 23:58 ET (04:58 GMT), gold futures expiring in February increased 0.2% to
$2,695.74 an ounce, while spot gold increased 0.1% to $2,672.12 an ounce.
Gold heads for weekly gains as rate, trade jitters spur
some haven demand
This week, spot prices were up roughly 1.5% as demand for
the yellow metal in safe havens was boosted by growing economic uncertainties.
Ahead of Friday's release of the December nonfarm payroll
data, which is expected to influence the forecast for U.S. rates, markets were
tense.
Over the past year, payroll data has continuously exceeded
projections due to the job market's ongoing strength. The Fed has more leeway
to contemplate rate decreases in the future because to this trend.
In light of sticky inflation and indications of labor market resiliency,
policymakers were hesitant to further lower interest rates, according to this
week's central bank December meeting minutes.
Additionally, Fed officials were observed voicing some
worries about inflationary pressures brought on by President-elect Donald
Trump's expansionary and protectionist ideas. It is anticipated that
uncertainty around his plans would increase before to his January 20
inauguration.
On Friday, other precious metals saw increases. By 00:12 ET (05:12 GMT), silver
futures increased 0.5% to $31.160 an ounce, while platinum futures increased
0.9% to $993.20 an ounce.
Copper upbeat on China stimulus hopes
Copper prices continued to rise among industrial metals as
speculation that Beijing will significantly expand its stimulus program in 2025
was fueled by poor economic data from China, the country's largest importer.
March copper futures increased 0.5% to $4.3355 a pound,
while benchmark copper futures on the London Metal Exchange increased 0.5% to
$9,123.50 a ton.
Bets that Beijing will be pressured to provide more
stimulus, particularly fiscal measures meant to boost private spending, were
fuelled by weak Chinese inflation data that was revealed on Thursday.
In order to safeguard the Chinese economy, which is already struggling with
years of slow development, Beijing is also anticipated to be compelled to
provide additional stimulus by the prospect of higher U.S. trade penalties.
China imports more copper than any other country in the
world and has been a significant weight
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