Market Snapshot
Gold prices were little changed on Friday, with spot gold trading at $4,477.10 per ounce in early Asian hours, positioning the metal for a modest weekly advance. The previous session saw a 2% surge after Federal Reserve Governor Christopher Waller indicated he would back leaving interest rates unchanged if incoming data continued to show inflation pressures easing. Meanwhile, US gold futures for December delivery slipped 0.4% to $4,522.60.[S1]
Investors currently see roughly a 50% likelihood of a Fed rate increase this month, as indicated by the CME FedWatch Tool. The upcoming US nonfarm payrolls report, set for release at 1230 GMT, is now the main focus and could offer more clarity on the central bank's next moves.[S1]
Analyst Views and Geopolitical Context
Ross Maxwell, who leads global strategy operations at VT Markets, said that if jobs data comes in weak and unemployment climbs, the argument for a rate hike would lose strength, possibly helping gold bounce back. Still, he warned that gold might stay susceptible to shifts in market mood, especially with inflation numbers due next week. He also pointed out that ongoing central bank buying continues to support the market, which could curb how far prices might fall.[S1]
While gold is traditionally seen as a hedge against inflation, higher interest rates tend to diminish the appeal of the non-yielding asset. Recent data showed a marginal increase in US jobless claims last week, suggesting a stable labor market. In a separate development, US Vice President JD Vance stated that the hostilities between the US and Iran do not constitute a war and declined to offer a timeline for their conclusion, underscoring the challenges facing the administration as the conflict enters its seventh month with midterm elections approaching.[S1]
Other Metals Performance
Among other precious metals, spot silver declined 0.3% to $66.78 per ounce but was still on track for a weekly gain. Platinum fell 0.8% to $1,811.28, and palladium dropped 0.4% to $1,415.75, with both metals heading for slight weekly losses.[S1]
