Investing.com — Gold prices rose in Asian markets on Friday, but managed to halt losses from a record high hit the previous day as growing caution ahead of a speech from Federal Reserve Chairman Jerome Powell gave the dollar some support.
Gold surged to a record high earlier this week amid growing confidence that the Fed will begin cutting interest rates from September. Profit-taking has pushed prices lower, but gold remains relatively strong.
As of 01:24 ET (05:24 GMT), it was up 0.4% at $2,495.52 an ounce, while December maturities were up 0.6% at $2,530.70 an ounce. Spot prices were down slightly this week after hitting a record high of $2,531.72 an ounce.
Powell speech scheduled amid speculation of rate cut
He is scheduled to speak at the Jackson Hole Symposium later on Friday, where he may offer further hints about the Fed’s plans to cut interest rates.
The market is broadly pricing in a September rate cut, but traders are split between a 25 basis point or 50 basis point cut.
Weak labor data released earlier this week showed a sharp downward revision in payroll data for the year to March 2024, strengthening expectations of further rate cuts.
The figures suggested that recent signs of slowing employment growth were coming from a much weaker base than initially thought, raising concerns about a slowdown in the U.S. economy.
The prospect of slowing economic growth and lower interest rates bodes well for gold given its safe-haven nature. Lower interest rates also mean a lower opportunity cost of buying bullion.
Other precious metals rose on Friday but were middling performers for the week, rising 0.7% to $959.75 an ounce and 0.9% to $29.290 an ounce.
Copper prices rise for second consecutive week
Among industrial metals, copper prices rose on Friday and are on track to post a second straight week of gains as the metal extended its recovery from lows hit in early August.
The London Metal Exchange benchmark rose 0.8% to $9,204.50 a tonne, while one-month contracts rose 0.7% to $4.1655 a pound. Both contracts have risen between 0.5% and 1% this week.
Copper has rebounded in two weeks from lows hit in August on cheap buying and improving sentiment toward China, the biggest importer.
The market also expects that lower U.S. interest rates will lead to improved global copper demand.
