🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Gold set for Weekly Gains as Recession Fears Grow, U.S. Jobs Data Awaited

Published 05/08/2022, 02:58
© Reuters
XAU/USD
-
XAG/USD
-
GC
-
HG
-
SI
-
PL
-
DXY
-

By Ambar Warrick 

Investing.com-- Gold prices extended gains on Friday and were set to end the week higher amid growing jitters over slowing global growth, while losses in the dollar ahead of U.S. nonfarm payrolls data also helped metals. 

Most industrial metal prices also rose as losses in the dollar eased some pressure. But they are broadly set to end the week lower after a swathe of weak manufacturing data. 

As of 2106 ET (0110 GMT), spot gold was up slightly at 1,792 an ounce, after rallying 1.6% in the prior session. Gold futures were up 0.1% at $1,808.30.

Both price indicators were set to end the week up 1.5%, as a growing number of dismal economic indicators from across the globe deepened concerns over a coming recession.

Demand for safe havens in Asia was also bolstered by an escalation in tensions between China and Taiwan, after Beijing fired missiles around the island as part of a “military drill.” The move was in retaliation for U.S. House of Representative Speaker Nancy Pelosi's visit to Taiwan this week, which was opposed by China. 

But the US Dollar Index tumbled 0.8% on Thursday, and was muted on Friday as volatility kicked in ahead of key U.S. nonfarm payrolls data, due later in the day.  

Investors will watch the reading closely, given that it factors into the Federal Reserve’s plans to hike interest rates further. A stronger-than-expected reading could signal resilience in the jobs market, giving the Fed more room to raise rates

Other precious metal prices also rose, with Platinum Futures rising 0.6%, while Silver Futures rose 0.3%.  

Among industrial metals, Copper Futures rose 0.6% on Friday, boosted largely by a falling dollar. But the red metal is set to end the week nearly 3% lower, after weak manufacturing data from China and the Eurozone painted a dismal picture for demand this year. 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.