Key moments
- Gold poised for 1.9% weekly gain, outlook remains optimistic
- Overall uncertainty continues to underpin safe haven demand
- US Non-Farm Payrolls figures on traders’ radar for clues over Fed monetary easing path
Spot Gold traded within a relatively tight range on Friday and looked set for a weekly gain, as investors braced for the US Non-Farm Payrolls report later in the day for more insight into macroeconomic conditions and the Fed’s future interest rate path.
Employers in all sectors of the US economy, excluding farming, probably added 160,000 job positions in February, according to market consensus, following a job growth of 143,000 in January.
Federal Reserve Governor Christopher Waller said he strongly opposed a rate cut at the upcoming FOMC policy meeting in March. Yet, he considered rate cuts later this year appropriate in case inflation pressures continued to ease.
The ongoing trade tensions, inflation uncertainty and weaker US Dollar continue to be supporting factors for Gold – a good inflation hedge.
Yesterday US President Donald Trump suspended the 25% tariffs, imposed earlier on the majority of imports from Canada and Mexico – the latest twist in the Trump administration’s shifting trade policy.
“Markets are waiting for fresh triggers regarding what is likely to happen going forward with respect to the trade war … The outlook for gold continues to remain very optimistic,” Kunal Shah, head of research at Nirmal Bang Commodities, was quoted as saying by Reuters.
Spot Gold was last up 0.10% on the day to trade at $2,914.05 per troy ounce. It has recently found support at the 20-day Exponential Moving Average just above the $2,885 mark.
The yellow metal has gained 1.92% so far this week, after a 2.66% slump in the prior week.
Gold Futures for delivery in April were down 0.22% on the day to trade at $2,920.20 per troy ounce.
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