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Gold prices advanced in Asian trading on Friday, holding close to record highs as investors ramped up bets on a September Federal Reserve rate cut. Focus now turns to the upcoming nonfarm payrolls report, which could reinforce expectations for policy easing.
Gold Maintains Bullish Momentum
- Spot gold rose 0.4% to $3,559.82/oz, while December futures gained 0.3% to $3,617.87/oz by 01:04 ET (05:04 GMT).
- Prices hit a record high of $3,578.80/oz earlier this week.
- Gold is on track for a 3.2% weekly gain, marking its third consecutive week of strong gains.
The yellow metal has been supported by:
- Growing conviction in a September Fed cut.
- Persistent safe-haven demand, with traders wary of U.S. trade tariffs, Fed independence concerns, and rising debt levels in developed economies.
Fed Expectations Drive Rally
- Jobless claims and job openings earlier in the week showed weaker-than-expected readings, signaling a cooling labor market.
- Several Fed officials hinted that the central bank is more open to easing.
- Traders now price in a 96% probability of a 25-basis-point cut at the September 16–17 Fed meeting (CME FedWatch).
Lower rates typically boost gold and other non-yielding assets, as they reduce the opportunity cost of holding metals over bonds.
Broader Metal Markets Positive
- Platinum rose 0.6% to $1,383.20/oz, up 1.1% for the week.
- Silver gained 0.5% to $40.8615/oz, climbing nearly 3% weekly.
- Copper strengthened, with LME futures up 0.7% to $9,957.05/ton, and COMEX contracts up 0.6% to $4.5932/lb.
Nonfarm Payrolls in Focus
Markets are now watching the U.S. jobs report at 08:30 ET (12:30 GMT). Economists expect it to confirm weak labor market conditions, further priming the Fed for a September cut.
If payrolls surprise on the downside, gold could test fresh record highs. Conversely, a stronger-than-expected report may temporarily cap bullion’s rally.
