Gold prices inched up on Friday as investors eyed the U.S. non-farm payrolls data, which could provide further signals on the Federal Reserve‘s policy stance. Despite the increase, gold prices were headed for their second straight weekly decline.
In Saudi Arabia, 24-carat gold saw a 0.18 percent increase to SAR277.99 per gram and SAR8,646.57 per ounce.
Globally, spot gold saw a 0.13 percent increase to $2,306.89 per ounce, as of 5:34 GMT, and has lost more than 1 percent this week. Prices have declined by almost $130 after reaching a record high of $2,431.29 earlier in April. Meanwhile, U.S. gold futures saw a 0.32 percent increase to $2,317.00.
Factors impacting gold prices
Analysts attribute the recent decline in gold prices to diminishing geopolitical concerns and a reevaluation of interest rate expectations.
In addition, the Federal Reserve’s recent indications of potential future interest rate adjustments have added complexity to the market landscape. While leaning towards eventual rate cuts, the Fed remains attentive to inflation data, hinting at a cautious approach to monetary policy adjustments. According to the CME FedWatch Tool, Markets expect a 73 percent chance of an interest rate cut in November.
As anticipation builds ahead of the release of U.S. non-farm payrolls data, investors eagerly await insights into the labor market’s health and its potential implications for the Federal Reserve’s policy trajectory. A softer-than-expected report may provide support for gold prices, while a stronger report could exert downward pressure.
Read: Saudi Arabia set to increase assets under management to 29.4 percent of GDP by 2024
Other precious metals
In addition to gold prices, spot silver experienced a slight increase of 0.02 percent to $26.70. However, it experienced a weekly decline of around 2 percent. Conversely, platinum recorded a 0.58 percent increase, reaching $955.14, with palladium declining 0.20 percent to $933.63.
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