Investing.com- Gold prices rose slightly in Asian trade on Friday and were headed for a weekly gain as heightened uncertainty over U.S. interest rates and trade tariffs fueled increased demand for the safe haven.
But a stronger dollar, ahead of a key labor market report due later in the day, capped any further gains in gold, as did hawkish signals from the Federal Reserve.
it was up 0.1% at $2,672.12 an ounce, while February expiry was up 0.2% at $2,695.74 an ounce by 11:58 PM ET (04:58 GMT).
Gold heads for weekly gains as exchange rate, jitters in trade fuel some haven demand
Spot prices rose about 1.5% this week, as increased economic uncertainty fueled demand for the safe-haven yellow metal.
Markets were on edge ahead of December data, due later on Friday, which is likely to weigh on the outlook for US rates.
Wage data has consistently beaten expectations over the past year, amid continued resilience in the labor market. This trend gives the Fed more room to consider future rate cuts.
Minutes from the central bank’s December meeting showed this week that policymakers were cautious about cutting interest rates further, amid sticky inflation and signs of resilience in the labor market.
Fed officials were also seen expressing some concern about the inflationary pressures of protectionist and expansionary policies under President-elect Donald Trump. Uncertainty over his plans is expected to grow ahead of his inauguration on January 20.
Other precious metals rose on Friday. it rose 0.9% to $993.20 an ounce, while it rose 0.5% to $31.160 an ounce by 00:12 ET (05:12 GMT).
Copper optimistic due to expectations of stimulus in China
Among industrial metals, copper prices continued to rise as weak economic readings from top importer China continued to fuel bets that Beijing will significantly increase its stimulus in 2025.
The benchmark on the London Metal Exchange rose 0.5% to $9,123.50 a tonne, while March rose 0.5% to $4.3355 a pound.
Weak Chinese inflation data released on Thursday fueled bets that Beijing will be forced to launch additional stimulus, particularly fiscal measures aimed at boosting private consumption.
The threat of increased US trade tariffs is also expected to prompt Beijing to provide additional stimulus to protect China’s economy, which is already struggling with years of weak growth.
China is the world’s largest importer of copper and has been a major drag on copper prices amid concerns that demand in the country will slow due to economic strife.
