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Gold set for Weekly Gains as Recession Fears Grow, U.S. Jobs Data Awaited

Published 08/05/2022, 09:58 AM
Updated 08/05/2022, 09:58 AM
© Reuters

By Ambar Warrick 

Investing.com-- Gold prices extended gains on Friday and were set to end the week higher amid growing jitters over slowing global growth, while losses in the dollar ahead of U.S. nonfarm payrolls data also helped metals. 

Most industrial metal prices also rose as losses in the dollar eased some pressure. But they are broadly set to end the week lower after a swathe of weak manufacturing data. 

As of 2106 ET (0110 GMT), spot gold was up slightly at 1,792 an ounce, after rallying 1.6% in the prior session. Gold futures were up 0.1% at $1,808.30.

Both price indicators were set to end the week up 1.5%, as a growing number of dismal economic indicators from across the globe deepened concerns over a coming recession.

Demand for safe havens in Asia was also bolstered by an escalation in tensions between China and Taiwan, after Beijing fired missiles around the island as part of a “military drill.” The move was in retaliation for U.S. House of Representative Speaker Nancy Pelosi's visit to Taiwan this week, which was opposed by China. 

But the US Dollar Index tumbled 0.8% on Thursday, and was muted on Friday as volatility kicked in ahead of key U.S. nonfarm payrolls data, due later in the day.  

Investors will watch the reading closely, given that it factors into the Federal Reserve’s plans to hike interest rates further. A stronger-than-expected reading could signal resilience in the jobs market, giving the Fed more room to raise rates

Other precious metal prices also rose, with Platinum Futures rising 0.6%, while Silver Futures rose 0.3%.  

Among industrial metals, Copper Futures rose 0.6% on Friday, boosted largely by a falling dollar. But the red metal is set to end the week nearly 3% lower, after weak manufacturing data from China and the Eurozone painted a dismal picture for demand this year. 

 

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