Gold prices are set to post their best weekly gain since April, supported by safe-haven demand and expectations that the Federal Reserve will start cutting interest rates in September, while markets await U.S. jobs data.
Spot gold rose 0.7% to $2,463.46 an ounce as of writing, just $20 below a record high of $2,483.60 hit on July 17.
U.S. gold futures rose 1% to $2,507. Prices have risen 3.2% this week.
Investors are awaiting the US jobs report, looking for further indications on the path of monetary policy.
For his part, Federal Reserve Chairman Jerome Powell said last Wednesday that interest rates may be cut soon, perhaps in September, if the US economy continues on its expected path.
Meanwhile, Ole Hansen, head of commodity strategy at Saxo Bank, said that the target of reaching the $2,500 level could be achieved soon if weak economic data continues.
Hansen added that expectations of a Federal Reserve rate cut interest rates Geopolitical tensions, rising debt concerns and renewed demand from central banks and ETF investors could also help lift prices.
Gold is considered a hedge against geopolitical and economic risks, and lower interest rates reduce the opportunity cost of holding it.
As for other precious metals:
- Spot silver rose 1.5% to $28.97.
- Platinum also rose 1.4% to $969.52.
- Palladium rose 0.6% to $910.25.
All three metals are heading for weekly gains.
