Gold prices climb on safe-haven demand; US payrolls data in focus

Last Update: 2024-10-04 11:45:27 - Source: Shafaq News

Shafaq News/Gold prices climbed on Friday, supported by safe-haven demand arising from theMiddle East conflict, while spotlight shifted towards U.S. payrolls report togauge the trajectory of the Federal Reserve's policy path.

Spot goldwas up 0.3% at $2,662.72 per ounce, as of 0649 GMT, after climbing to anall-time high of $2,685.42 on Sept. 26. Bullion has gained 0.2 for the week.

U.S. goldfutures edged 0.2% higher to $2,682.90.

A line charttitled "Spot gold price in USD per oz" that tracks the metric overtime.

A line charttitled "Spot gold price in USD per oz" that tracks the metric overtime.

The dollar(.DXY), opens new tab eased 0.2%, pulling back from over a one-month high,making greenback-priced bullion less expensive for other currency holders.

Geopoliticaltensions, particularly concerning Israel and Iran, are supporting gold pricesand unless these risks subside, prices are likely to remain near record levels,said Ajay Kedia, director at Kedia Commodities, Mumbai.

The U.S. isdiscussing strikes on Iran's oil facilities as retaliation for Tehran's missileattack on Israel, President Joe Biden said, while Israel's military hit Beirutwith new air strikes in its battle against Lebanese armed group Hezbollah.

Bullion isconsidered a safe investment during times of political and financial uncertainty,and thrives in a low-rate environment.

The U.S.nonfarm payroll data is due at 1230 GMT. New York Fed President John Williamsand Chicago Fed President Austan are also scheduled to speak later in the day.

If the NFPreport comes in strong, it will be positive for the dollar and then gold priceswill see some profit-booking, Kedia added.

U.S. stocksfinished lower on Thursday as investors kept a watchful eye on the growingconflict in the Middle East.

Traders seea 65% chance of a 25-basis-point Fed rate cut in November, according to CMEFedWatch Tool., opens new tab

BMI said ina note it expects gold prices to trade within the range of $2,500 to $2,800 inthe coming months.

Spot silverinched 0.1% higher to $32.08 per ounce, and has gained about 1.4% so far thisweek.

Platinumclimbed 1.1% to $1,001.47 and palladium advanced 1.01% to $1,008.71.

(Reuters)