Investing.com — Gold prices rose in Asian markets on Friday, approaching major highs as expectations of key nonfarm payrolls data later in the day raised speculation of an interest rate cut by the Federal Reserve.
Gold is set to gain for the week after a series of U.S. economic data stoked hopes that the Federal Reserve will start cutting interest rates in September, a notion that sent the dollar tumbling to a two-month low.
The rate cuts by the Fed and the Fed also boosted optimism about accommodative monetary policy, benefiting metals markets.
As of 00:59 ET (04:59 GMT), it was up 0.5% to $2,386.55 an ounce, while August maturities were up 0.6% to $2,405.40 an ounce.
Gold Set for Weekly Gain Awaits Nonfarm Payrolls Release
Spot gold is expected to rise about 2.6% this week as weak data on the U.S. economy, particularly the labor market, bolsters expectations of interest rate cuts.
The reading comes just days ahead of key data due to be released later on Friday that is expected to provide clearer clues about the labor sector and interest rates.
The jobs report also comes ahead of next week’s Fed meeting where the central bank is widely expected to keep interest rates on hold, but any signals on monetary policy will be closely watched, especially with disappointing U.S. economic data.
Other precious metals rose on Friday but are on track for a mixed performance for the week, rising 0.3% to $1,014.40 an ounce and 0.8% to $31.622 an ounce.
Platinum fell 2.6% this week, while silver rose nearly 4%.
Copper prices weak but Chinese data gives some support
Among industrial metals, copper prices were weak on Friday, continuing to slide from record highs hit over the past two weeks, but positive Chinese import data signaled a favorable trend for the red metal.
The London Metal Exchange benchmark fell 0.3% to $10,116.50 a tonne, while one-month contracts fell 0.4% to $4.6532 a pound.
Data released by China on Friday showed copper imports rose 2.6 percent from a year earlier, although total imports into China fell more than expected in May.
China grew better than expected, reflecting strong industrial production and overseas demand.
