Shafaq News

Gold rose more than 1% on Friday ‌and was set for its biggest weekly gain since January, helped by weaker oil prices, while investors awaited key U.S. nonfarm payrolls data for clues on the interest rate outlook.

Spot gold was up ​1.1% at $4,285.89 per ounce, by 0635 GMT, after hitting a seven-week high on ​Thursday. Prices gained 6% for the week.

U.S. gold futures rose 1.1% to $4,344.90.

Hopes ⁠of peace in the Middle East pushed inflation expectations lower, allowing gold to ​surge from a multi-week consolidation above $4,000, said Matt Simpson, a senior analyst at StoneX.

U.S. President Donald ​Trump told reporters that he believed the war with Iran would be over soon.

Crude oil prices were headed for a weekly loss. Lower energy prices help ease inflation concerns and reduce expectations of higher-for-longer ​interest rates. Gold is an inflation hedge, but elevated interest rates tend to weigh ​on its appeal as it offers no yield.

The U.S. Labor Department's nonfarm payrolls report for July is ‌due ⁠at 1230 GMT.

"Regardless of how NFP plays out, $4,000 has proven to be a solid support level - and I suspect bulls are waiting for dips to take advantage of a much-needed correction higher towards $4,600. NFP may provide some noise over the near term, but ​price action has spoken, ​and gold looks like ⁠it wants to rally," Simpson added.

Traders currently see a 55% chance of a U.S. rate hike in September, according to the ​CME FedWatch Tool.

"Going into August, we are somewhat friendlier towards gold ​and expect ⁠a wider trading band to set in," Marex said in a note.

Silver prices are testing the upper end of a trading range that has held for nearly two months, and a ⁠breakout ​could pave the way towards $68, it said.

Spot silver climbed ​3.3% to $63.48, platinum rose 1.5% to $1,755.90 and palladium gained 0.3% to $1,374.30. All three metals were headed for weekly ​gains.

(Reuters)

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