PT Rifan – Gold Holds Near Record High as Trump Worries Ahead of U.S. Data
Gold held steady near a record high ahead of a key U.S. jobs report, as rising geopolitical tensions and economic concerns continued to support safe-haven demand.
Bullion traded near $2,860 an ounce — and up more than 2% this week — before Friday’s nonfarm payrolls data. A weak reading could raise expectations for further Federal Reserve interest rate cuts, while a stronger-than-expected number could have the opposite effect. Lower borrowing costs tend to benefit gold, since it doesn’t pay interest.
The U.S.-China trade war and concerns that President Donald Trump will follow through on threats to impose tariffs on other countries, as well as his unconventional geopolitical position, support gold’s role as a store of value in uncertain times. The precious metals market appears set to continue to rally, with prices likely to reach $3,000 an ounce within three months, Citigroup Inc. said in a note. The market is also trying to get a sense of the potential implications for the U.S. economy and monetary policy if the new administration’s policies on trade and immigration rekindle inflation and hurt growth.
Trade war concerns have prompted traders in London to shift metals to the U.S., fearing that bullion might not be exempt from potential tariffs. Earlier, Bloomberg reported that gold in Bank of England vaults was trading at a discount to the broader market, leading to weeks-long queues to withdraw the metal amid a scramble for supplies.
Spot gold rose 0.1% to $2,859.01 an ounce as of 8:13 a.m. in Singapore, after hitting an all-time high of $2,882.36 on Wednesday. The Bloomberg Dollar Spot Index was little changed, down 0.8% for the week. Silver and platinum edged up, while palladium fell.
Source: Bloomberg
Gold halts record rally, drops 1% as US jobs report looms
Gold prices slid 1% on Thursday as the U.S. dollar firmed ahead of a key jobs report and investors took profits, after bullion recorded consecutive record peaks in the previous five sessions on the back of escalating trade tensions between the U.S. and China.
Spot gold slipped 0.4% to $2,853.16 per ounce by 01:50 p.m. ET (1850 GMT) after hitting an all-time high of $2,882.16 on Wednesday. U.S. gold futures settled 0.6% lower at $2,876.70.
“There’s probably a combination of a stronger dollar, some profit taking and yields moving a little bit higher off their lows,” weighing on gold ahead of the U.S. employment report, said Daniel Pavilonis, senior market strategist at RJO Futures.
Nonfarm payrolls likely increased by 170,000 jobs after surging to 256,000 in December, a Reuters survey of economists showed. The unemployment rate is forecast unchanged at 4.1%.
A resilient labor market is fuelling economic growth and allowing the Federal Reserve to halt interest rate cuts as it evaluates the inflationary effects of Trump’s fiscal, trade and immigration policies.
“In addition to the volatility in general, we still have inflation in the background that’s starting to creep up, so gold is responding as a safe haven,” said Alex Ebkarian, chief operating officer at Allegiance Gold.
“Gold is on its way for $2,900, and you have very strong sentiment despite the fact that in the short term, the dollar gained strength.”
On a technical basis, gold’s Relative Strength Index (RSI) stands above 70, indicating that the metal is overbought.
Meanwhile, the stock of gold at the Bank of England has fallen by about 2% since the end of last year, its Deputy Governor Dave Ramsden said, citing strong demand for gold stored at the bank to take advantage of international price differentials.
In other metals, spot silver dropped 0.1% to $32.27 per ounce, and palladium fell 1.4% to $975.59. Platinum rose 0.7% to $985.98. PT Rifan.
Source: Reuters