Gold prices rose on Friday, driven by escalating trade tensions between the US and China, which led investors to seek refuge in the safe-haven asset. Spot gold gained 0.2% to $2,861.46 per ounce, up more than 2% this week.
The uncertainty surrounding Trump’s tariff policies is a key focus for the gold market, according to David Meger, director of metals trading at High Ridge Futures. The US President recently imposed new duties on China and granted Mexico and Canada a one-month reprieve.
Gold prices have been boosted by growth in the People’s Bank of China’s gold holdings and a new Chinese program allowing insurance funds to invest in gold, according to Peter Grant, vice president and senior metals strategist at Zaner Metals.
The latest Labor Department report showed the US economy added 143,000 jobs in January, beating expectations. However, wage growth and declining job creation are challenging the Federal Reserve’s ability to adjust rates, making a cautious approach necessary, said Bart Melek, head of commodity strategies at TD Securities.
Silver fell 0.8% to $31.94 per ounce, while platinum dropped 0.3% to $982.50. Palladium was down 0.7% at $971.62, but silver and platinum are still heading for weekly gains.
Source: https://www.reuters.com/markets/commodities/gold-set-sixth-successive-weekly-gain-us-payrolls-report-looms-2025-02-07