Gold prices surged above $2,363 per ounce in immediate delivery trading, marking a more than 1% increase for the week. Silver also benefited, approaching $31 per ounce as investor sentiment was buoyed by expectations of Federal Reserve intervention.
Recent reports highlighted a contraction in the American services sector, its sharpest in four years, alongside softening signs in the labor market. With inflation trending lower amidst economic slowdown, speculation grows that the Fed may lower borrowing costs, making gold—an asset that doesn’t yield interest—more attractive.
This week’s upward momentum for gold continues a trend of three consecutive quarterly gains, spurred by substantial central bank acquisitions and geopolitical tensions. Asian buying also bolstered prices as regional currencies weakened, prompting investors to seek value-preserving assets.
At 1:30 p.m. in Singapore, spot gold climbed 0.3% to $2,363.67 per ounce. The Bloomberg Dollar Spot Index and 10-year US Treasury yields were poised for weekly declines, supporting precious metals. Silver surged nearly 5% this week, with platinum and palladium also seeing gains.
The upcoming US employment report is anticipated to show reduced hiring and moderated wage growth, with payrolls likely to have increased by 190,000 last month, according to a Bloomberg survey. Unemployment is expected to hold at 4%, its highest level in over two years.
