Gold prices in Asian trade on Friday showed little movement as markets were cautious before the release of key U.S. payrolls data, and the potential for prolonged high interest rates put gold on track for weekly losses. The precious metal had experienced a significant drop from its recent record highs over the past two weeks due to diminishing safe haven demand and renewed pressure from U.S. interest rates. Spot gold remained steady at $2,302.72 per ounce, while gold futures expiring in June saw a slight increase to $2,311.45 per ounce by 00:21 ET (04:21 GMT). The weakening of the dollar in overnight trading provided some relief for gold prices but only managed to stem recent losses. Gold was down approximately 1% for the week, marking its second consecutive week of decline. The dimmed outlook for gold prices was a result of expectations of sustained high U.S. interest rates. The upcoming release of nonfarm payrolls data was anticipated to influence rate expectations further, with any indications of labor market strength potentially giving the Federal Reserve more room to maintain high rates. The Fed had recently indicated its intention to keep rates high in the near future, citing persistent inflation, although it did not signal any plans for further rate hikes. The prolonged high interest rates were unfavorable for gold, as they increased the opportunity cost of investing in the precious metal. With a decrease in safe haven demand for gold amid easing geopolitical tensions in the Middle East, the metal was left exposed to potential rate fluctuations.
Other precious metals displayed mixed performance during the week. Silver futures showed a slight increase on Friday but were on track for a second consecutive week of losses. Platinum futures were poised for a nearly 6% increase for the week, rebounding from three-week lows. Among industrial metals, copper prices remained flat on Friday and were headed for modest weekly losses due to profit-taking driven by concerns about U.S. interest rates. Despite this, copper prices remained close to recent two-year highs. Three-month copper futures on the London Metal Exchange rose by 0.2% to $9,827.0 per ton, while one-month copper futures saw a slight decrease to $4.5012 per pound. Both contracts were expected to decline by 1% to 1.5% for the week after rallying for five consecutive weeks on supply tightening expectations.
