Gold edges higher, set for weekly gain as markets eye U.S. jobs data

Gold gains amid Middle East tensions and easing inflation concerns

Spot gold rose 0.8% to $4,723.52 per ounce by 01:35 ET (05:35 GMT) on Friday, while U.S. Gold Futures increased 0.5% to $4,731.96. Bullion has gained nearly 2% this week, rebounding from one-month lows reached earlier in May. Despite this recovery, gold remains more than 10% lower since the Iran conflict erupted in late February, a period marked by surging oil prices, heightened inflation fears, and rising interest rate expectations.

Market attention stayed on developments in the Middle East after U.S. and Iranian forces exchanged fire on Thursday near the Strait of Hormuz, described as the most serious breach so far of a month-old ceasefire. Iran subsequently reported that conditions in the affected coastal areas had returned to normal, while U.S. President Donald Trump told ABC News that the ceasefire remained in effect.

Gold, traditionally seen as a safe-haven asset, found support as prospects of a broader U.S.-Iran peace agreement helped cool oil prices from recent highs, easing inflation concerns. Lower inflationary pressures can alleviate fears of prolonged higher interest rates, which tends to be supportive for non-yielding bullion. A slight mid-week retreat in the U.S. dollar also aided gold, with the U.S. Dollar Index trading 0.1% higher in Asian hours after closing largely flat in a volatile prior session.

Traders await U.S. payrolls for Fed policy signals

Trading activity in gold was constrained as investors awaited the U.S. non-farm payrolls report due later on Friday, seen as a key input for Federal Reserve policy expectations. Analysts, on average, forecast U.S. payrolls growth of 65,000, with the unemployment rate expected to remain steady at 4.3%.

A weaker-than-expected labor market reading could reinforce market expectations for future Fed rate cuts, potentially supporting gold by lowering the implied opportunity cost of holding non-interest-bearing assets.

Among other precious metals, spot silver rose 1.9% to $79.95 per ounce, while platinum climbed 1.7% to $2,060.30 per ounce. In base metals, benchmark Copper Futures on the London Metal Exchange edged up 0.4% to $13,396.33 a ton, and U.S. Copper Futures advanced 1.4% to $6.21 a pound.

FAQ

What are current gold prices and how have they moved this week?
Spot gold is trading at $4,723.52 per ounce and U.S. Gold Futures at $4,731.96, with bullion up nearly 2% for the week after rebounding from one-month lows earlier in May.

How are U.S.-Iran tensions affecting gold?
Exchanges of fire near the Strait of Hormuz and uncertainty around the ceasefire have kept attention on the Middle East, while expectations of a broader peace agreement have helped ease oil prices and inflation concerns, providing support to gold.

Why is the U.S. jobs report important for gold markets?
The U.S. non-farm payrolls data influence expectations for Federal Reserve interest rate decisions; weaker-than-expected employment figures could increase expectations for rate cuts, which may support demand for non-yielding assets such as gold.

How are other precious and base metals performing?
Spot silver is up 1.9% to $79.95 per ounce, platinum is up 1.7% to $2,060.30 per ounce, London Metal Exchange Copper Futures are up 0.4% to $13,396.33 a ton, and U.S. Copper Futures are up 1.4% to $6.21 a pound.