Gold prices soared during Friday’s trading session, marking the fourth consecutive day of gains and propelling the precious metal to its highest level in over a month. The rally sets the stage for gold’s most significant weekly increase in six weeks.
Spot gold prices climbed by approximately 0.38% to $2,679.70 per ounce, a peak not seen since December 13th. Currently, spot gold contracts are on track for a weekly gain of more than $40, representing the most substantial advance in six weeks. Meanwhile, futures contracts for gold in February jumped by 0.65% to $2,708.30 per ounce, setting the stage for a weekly increase of over $50 per ounce.
Several factors contributed to gold’s gains, with investors worldwide exhibiting caution in anticipation of crucial US labour market data scheduled for release later in the day. The increased demand for gold as a safe haven asset comes amidst growing concerns regarding the potential impact of Trump’s tariffs on the global economy.
Furthermore, gold priced in US dollars has benefitted from the greenback’s weakness during today’s trading. The anticipation of US labour market data has led to a decrease in the cost of owning gold for investors holding other currencies. The dollar index, which measures the US dollar’s performance against a basket of six major currencies, remained relatively unchanged at 109.178 points.
As the world’s largest gold buyer, China’s continued gold bullion purchases throughout December played a significant role in gold’s price rally this week. Additionally, demand for gold increased as a hedge against potential economic shocks, following data revealing that China’s inflation rate hit its lowest point since March of last year. These developments occurred despite ongoing efforts by the Chinese government to maintain the stability of the world’s second-largest economy.
With these factors at play, market participants and investors will continue to monitor gold’s performance and the broader economic landscape as they assess the potential for further price gains.
Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or other professional advice.