Gold rose more than 1% on Friday and is on track for its first weekly gain in five weeks, after US employment figures came in below forecasts and dampened expectations of a Federal Reserve rate increase.
Spot gold was up 1.4% at $3,179.94 per ounce as of 02:35 GMT, its highest level since 23 June. August gold futures on US markets added 1.6% to reach $3,193.20.
For the week, the metal is heading for a gain of 2.3%, the first positive weekly close since the week beginning 25 May. Softer-than-expected non-farm payrolls and private-sector employment data eased inflation concerns that had been weighing on the market.
A weakening dollar added to gold’s appeal, making the metal cheaper for buyers holding other currencies.
According to CME Group’s FedWatch tool, traders now price in roughly a 54% probability of a rate hike in September, down from 66% before the jobs data were released. Higher interest rates typically weigh on gold, which pays no yield, by making interest-bearing assets comparatively more attractive.
Other precious metals also advanced. Silver climbed 2.3% to $62.43 per ounce in spot trade, platinum gained 2.7% to $1,660.05, and palladium rose 1.3% to $1,284.40. All three are trading at their highest levels in more than a week and are tracking for weekly gains.
