Gold eyes best week in five months ahead of US jobs data

FE Team | Published: March 08, 2024 22:23:07

Gold prices were poised for their biggest weekly jump in five months on Friday, hovering near a historic high, as Federal Reserve Chair Jerome Powell's remarks cemented mid-year rate cut bets, ahead of a key jobs report later in the day, reports Reuters.
Spot gold was little changed at $2,157.16 per ounce, as of 0350 GMT, hovering around a record peak of $2,164.09 hit in the previous session.
U.S. gold futures were flat at $2,164.40.
Spot prices have gained more than 3.5% so far this week, on track to log their biggest weekly percentage gain since mid-October, when the Israel-Hamas conflict first escalated. This will also be bullion's third straight weekly climb, if gains hold.
While a spur of short-term speculative activity primarily driven by CTAs (Commodity Trade Advisors) and algorithmic trading prompted the gold rally, it's very much this expectation of interest rate cuts in the not-too-distant future that's backing it, said Nikos Kavalis, managing director at Metals Focus.
Lower rates boost the appeal of non-yielding bullion.
Another factor on why gold has been so solidly supported in recent weeks is the rally in procyclical asset classes, particularly equities as investors seek to diversify their risk exposure, Kavalis said.
The dollar headed for its sharpest weekly drop of the year, making bullion less expensive for other currency holders.
Spot platinum fell 0.3% to $916.30 per ounce, silver fell 0.1% to $24.29, while palladium rose 0.5% to $1,039.17. All three metals were poised for a weekly gain.