Investing.com–Gold prices rose on Friday, heading for weekly gains, as increased uncertainty over U.S. interest rates and trade rates fueled demand for safe havens.
At 04:21 ET (21:21 GMT), the price rose 0.7% to $2,690.16 per ounce, while the February maturity rose 1% to $2,717.40 per ounce.
Spot prices rose about 1.8% this week, while the gold contract was on track for a weekly gain of 2.7%
Gold is heading for weekly gains on port demand
The yellow metal got a boost this week as increased economic uncertainty fueled demand for safe havens.
Data released earlier Friday indicated the U.S. economy added 256,000 jobs in December, more than the expected 155,000 jobs.
The release of strong U.S. payroll data has prompted traders to adjust their expectations for the next Federal Reserve rate cut, according to data compiled by Bloomberg. The next rate cut is now expected to happen just once in 2025 and not until October.
These figures support the idea that the US economy is becoming less dependent on monetary policy support.
Minutes from the central bank’s December meeting showed this week that policymakers were cautious about cutting rates further amid persistent inflation and signs of labor market resilience.
There were also Fed officials who expressed some concern about the inflationary pressures of protectionist and expansionary policies under newly elected President Donald Trump. Uncertainty over his plans is expected to increase ahead of his inauguration on January 20.
Other precious metals rose on Friday. rose 0.8% to $992.65 per ounce, while the price rose 0.9% to $31.302 per ounce.
Buyer optimistic about stimulus hopes in China
Among industrial metals, copper prices continued to rise as weak economic data from top importer China continued to fuel expectations that Beijing will substantially step up its stimulus efforts in 2025.
The benchmark on the London Metal Exchange rose 0.03% to $9,081.00 a tonne, while March fell 0.5% to $4.2900 a pound.
Weak Chinese inflation data released on Thursday led to expectations that Beijing will be prompted to implement more stimulus measures, especially fiscal measures aimed at boosting private spending.
The threat of higher US trade tariffs is also expected to prompt Beijing to implement more stimulus measures to protect China’s economy, which has already struggled with years of sluggish growth.
China is the world’s largest copper importer and has put major pressure on copper prices as there are concerns that demand in the country will slow due to economic turmoil.
(Ambar Warrick contributed to this article.)
