Gold prices rose on Friday as investors sought safe-haven bullion on heightened uncertainty over a widening Middle East conflict.<\/p>\n
Christoph Burgstedt\/science Photo Library | Science Photo Library | Getty Images<\/p>\n
Gold rose on Friday after softer U.S. payrolls data kept hopes of a Federal \u200cReserve rate cut alive, but remained on track for its first weekly decline in five weeks as a stronger dollar kept gains in check.<\/p>\n
Spot gold was up 1.4% at $5,149.14 per ounce, \u200bbut was down 2.4% this week. U.S. gold futures for April delivery settled 1.6% higher at $5,158.70.<\/p>\n
“An alarmingly \u200bweak payrolls report that saw heavy private sector job losses along with higher \u2060wages whispers stagflation; let’s see if this is enough to help gold recover from what \u200bhas been a disappointing week,” said Tai Wong, an independent metals trader.<\/p>\n
Data showed that nonfarm payrolls decreased \u200bby 92,000 jobs last month, compared with economists’ expectations for a 59,000 gain, while the unemployment rate rose to 4.4%.<\/p>\n
On the geopolitical front, Israel pounded Beirut after ordering an unprecedented evacuation of the entire southern suburbs of \u200bthe Lebanese capital, a major expansion of the war against Iran it began a week ago \u200balongside the United States.<\/p>\n
The U.S. dollar index, opens new tab was set for its strongest weekly rise in over a year \u200cas the \u2060escalating conflict in the Middle East drove demand for safe-haven assets. That has made dollar-priced gold costlier for overseas buyers, helping push the metal down despite its reputation as a haven from risk.<\/p>\n
“You have algorithmic sellers calibrated to automatically sell when the dollar strengthens, part of the underperformance in precious \u200bmetals this week,” said \u200bHugo Pascal, a \u2060precious metals trader at InProved.<\/p>\n
Fed policymakers will meet on March 18, where they are widely expected to hold rates steady, with the first cut \u200bwidely expected in July, as per the CME FedWatch tool.<\/p>\n
Gold is often \u200bviewed as \u2060a long-term inflation hedge, but typically performs well in low interest-rate environments because it yields no income. It is up more than 18% so far this year. As the Iran conflict raged, crude prices were \u2060headed \u200bfor their sharpest weekly gain since Russia’s invasion of Ukraine \u200bin February 2022, stoking renewed inflation fears.<\/p>\n
Spot silver rose 2.6% to $84.30 per ounce. Spot platinum was up 0.5% at $2,131.50, while palladium lost 1.1% \u200bto $1,646.84. All metals were headed for weekly losses.<\/p>\n