Overview
Gold prices recovered on Friday, with spot gold increasing 1.3% to $4,175.72 per ounce and gold futures climbing 1.5% to $4,189.59 per ounce, positioning the metal for its first weekly gain in five trading days after earlier falling to eight‑month lows. Trading volumes were muted ahead of a U.S. market holiday.
U.S. Labor Data Impact
June U.S. non‑farm payrolls came in softer than market expectations, reducing speculation that the Federal Reserve will implement an additional rate hike this year. The softer payrolls eased the dollar’s strength, with the US Dollar Index slipping from near 13‑month highs (down about 0.17%).
Precious Metals Reaction
The decline in the dollar lifted other precious metals: spot silver rose 2.4% to $62.41 per ounce and spot platinum advanced 1.9% to $1,656.84 per ounce.
Recent Performance Context
Gold had shed roughly 13% during the June quarter and had erased all year‑to‑date gains prior to the latest rebound. Spot gold was up about 1% for the week.
Commentary
Analysts at OCBC noted that gold could continue its recovery if forthcoming U.S. data keep real yields low, but they cautioned that steady unemployment and persistent inflation risks warrant a measured approach. Earlier in the week OCBC had reduced its annual gold price forecast and also cut its silver price outlook, citing near‑term headwinds from U.S. rate expectations and high yields.
Federal Reserve Remarks
Fed Chair Kevin Warsh reiterated the central bank’s commitment to a 2% inflation target and signaled that policy would remain restrictive amid ongoing inflation concerns.