GOLD prices steadied on Friday (Feb 7) near record-high levels, and were headed to log their sixth successive weekly gain, as trade war jitters lifted safe-haven demand, while investors awaited the non-farm payrolls data for cues on the US economic health.
Spot gold was up 0.1 per cent at US$2,859.59 per ounce, as at 0038 GMT, and has gained more than 2 per cent so far this week. Bullion hit an all-time high at US$2,882.16 earlier this week.
US gold futures added 0.3 per cent to US$2,884.20.
Despite touching record highs for five consecutive sessions due to the escalating US-China trade tensions, gold prices retreated 1 per cent in the previous session as the US dollar strengthened ahead of the US jobs report.
Focus now shifts to the US employment report, due at 1330 GMT, which is expected to offer more clues about the economy’s overall strength.
A full-employment economy with solid growth and falling inflation will let the US Federal Reserve continue cutting interest rates, though uncertainty about the impact of tariffs and other policy changes argues for a slower approach, Chicago Fed president Austan Goolsbee said on Thursday.
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Gold is considered a safe investment during economic and geopolitical turmoil, but higher interest rates reduce the non-yielding asset’s appeal.
Goldman Sachs on Thursday upheld its gold price forecast of US$3,000 per ounce by Q2 2026, despite anticipating a temporary drop if US tariff uncertainty diminishes and market positioning normalises.
Meanwhile, the stock of gold at the Bank of England has fallen by about 2 per cent since the end of last year, deputy governor Dave Ramsden said, citing strong demand for gold stored at the bank to take advantage of international price differentials.
Spot silver added 0.1 per cent to US$32.24 per ounce, platinum edged 0.2 per cent higher to US$987.38, and palladium was flat at US$978.63.
Both silver and platinum were seen rising this week, while palladium was headed for a weekly loss. REUTERS
