By Anushree Mukherjee
(Reuters) – Gold prices scaled a four-week peak on Friday and were set for their best week in seven, driven by safe-haven demand amid uncertainties over President-elect Donald Trump’s policies, while markets awaited jobs data for clues on the trajectory of U.S. interest rates.
Spot gold climbed 0.4% to $2,679.91 per ounce, as of 0915 GMT after hitting its highest level since Dec. 13 earlier in the session. Prices have risen over 1% so far this week.
U.S. gold futures rose 0.6% to $2,705.90.
The most bullish outcome for gold is the pre-election narrative of ballooning fiscal deficits and unsustainable debt weighing on the U.S. dollar in the longer term and causing doubts about its role as the world’s reserve currency, said Carsten Menke, analyst at Julius Baer. [USD/]
Trump will take office on Jan. 20 and has vowed to implement tariffs, which could potentially ignite trade wars and inflation.
Bullion is considered a hedge against inflation but higher interest rates blunt its appeal as it yields no interest.
The short-term focus is on the U.S. payrolls report due at 1330 GMT. According to a Reuters survey, non-farm payrolls are expected to have increased by 160,000 in December, following a jump of 227,000 in November.
“A stronger-than-expected NFP report that further dilutes expectations for Fed rate cuts in 2025 could prompt some immediate paring of gold’s recent advance. If the U.S. jobs market shows signs of cooling, perhaps allowing the Fed to ease off on its hawkish stance, that could send gold closer to $2,700,” said Exinity Group chief market analyst Han Tan.
Meanwhile, gold discounts in India widened as consumers refrained from buying as local prices rose, whereas the upcoming Lunar New Year stimulated buying in other major Asian markets. [GOL/AS]
Spot silver firmed 0.5% to $30.28 per ounce, platinum gained 0.6% to $964.64 and palladium added 1.7% to $942.28. All three metals were headed for weekly gains.
(Reporting by Anushree Mukherjee in Bengaluru;Editing by Elaine Hardcastle)
