While investors anticipated U.S. non-farm payrolls data that was coming later in the day, gold marginally increased on Friday and was set for a weekly increase as the dollar declined and demand was bolstered by uncertainty about U.S. President Donald Trump’s tariff proposals.
As of 0800 GMT, spot gold increased by 0.2% to $2,916.88 an ounce. This week, Bullion has increased by almost 2%.
U.S. gold futures saw a 0.3% decline to $2,918.80.
“Markets are anticipating new cues about what is likely to occur in the trade conflict moving forward. The prognosis (for gold) is still quite positive,” stated Kunal Shah, head of research at Mumbai-based Nirmal Bang Commodities.
In the most recent development in a tumultuous trade strategy that has shook financial markets and stoked concerns about inflation and a slowdown in economy, Trump postponed on Thursday the 25% tariffs that were imposed this week on the majority of products from Canada and Mexico.
“Gold is bullish due to the ongoing trade tensions, inflation uncertainty, and a weaker dollar that indicates a slowing economy,” Shah added.
The U.S. dollar index, DXY, was on track to see its worst weekly decline since November 2022 and was trading close to a four-month low.
Safe-haven gold has risen more than 10% so far this year due to Trump’s proposals, which are generally perceived as likely to increase economic uncertainty.
Although he believes rate decreases later in the year are still possible if inflation pressures continue to subside, Federal Reserve Governor Christopher Waller stated that he is firmly opposed to a rate drop during the Fed’s next policy meeting this month.
Although increased interest rates reduce the attraction of the non-yielding asset, bullion is nevertheless seen as a hedge against inflation and political dangers.
The non-farm payrolls data, which is scheduled at 1330 GMT, is the focus of attention. According to a Reuters survey, it is anticipated to show a gain of 160,000 jobs in February.
The price of spot silver, XAGUSD1, decreased 0.1% to $32.60 per ounce. Palladium XPDUSD1! increased by 0.5% to $946.75, while platinum PL1! increased by 0.7% to $972.85.