Investing.com– Gold prices climbed in Asian trade on Friday, approaching a record high as global market turmoil and concerns about an economic slowdown prompted investors to seek safety in the precious metal.
Impressive Price Gains and Market Factors
Gold saw strong price gains during the week as expectations of U.S. interest rate cuts weighed on the dollar and pushed down Treasury yields. The heightened tensions in the Middle East following the killing of a Hamas leader also contributed to safe haven buying of gold.
As of 01:18 ET (05:18 GMT), gold was up 0.5% to $2,458.49 an ounce, while gold futures for December delivery rose 0.9% to $2,502.60 an ounce.
Gold heads for weekly gains; nonfarm payrolls awaited
Spot gold prices were on track to increase by over 3% for the week, marking their best week since March. Weak U.S. purchasing managers index and employment data raised concerns about a potential slowdown in the largest economy globally and fueled demand for safe havens like gold.
The recent data, combined with the Federal Reserve’s signaling of a possible interest rate cut in September, has led to market expectations of a 25 basis point cut next month. Eyes are now on the upcoming nonfarm payrolls data for further insight into the U.S. economy. If the labor market continues to weaken, it would likely support the case for interest rate cuts by the Fed, which would be positive for precious metal prices due to the decreased opportunity cost of holding non-yielding assets.
Silver also saw gains, rising 0.7% to $977.25 an ounce, while platinum jumped 1.6% to $28.925 an ounce.
Copper nurses weekly losses amid growth fears
On the industrial metals front, copper prices edged up on Friday but were heading for a fourth straight week of losses. Concerns about a global economic slowdown impacting demand were the main drivers behind the losses.
Benchmark copper on the London Metal Exchange increased by 0.2% to $9,073.0 a tonne, while one-month copper rose by 0.6% to $4.0900 a pound. Both contracts were slightly down for the week and were set to record a fourth week of losses. The weak PMI readings from the U.S. and China, indicating a decrease in manufacturing activity, were factors contributing to the decline in copper prices.
Overall, the uncertainty in global markets and concerns about economic growth have led investors to seek refuge in safe haven assets like gold, driving up prices and highlighting the importance of monitoring economic data for market trends.
