Quick overview

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Gold prices increased on Friday, and the bullion asset is expected to have a good week due to cautiousness ahead of a significant US payrolls reading and uncertainty surrounding US trade policy, which supported haven demand.

 

Bullion and other metal prices also profited from a weaker dollar, which hovered around two-year lows in the absence of many encouraging signs regarding the US economy.

Another factor that increased risk appetite was a dramatic sell-off on Wall Street brought on by a heated, public dispute between billionaire Elon Musk and President Donald Trump.

Spot gold increased 0.5 percent to $3,369 an ounce, while August gold futures increased 0.5 percent to $3,392/oz.

Trump’s promising meeting with Chinese President Xi Jinping, which might revive trade relations between the US and China, did little to discourage risk aversion. Russia’s increased military action also increased demand for havens.

The precious metal is expected to increase by roughly 2 percent this week, and spot prices are currently around $140 below recent record highs. Increasing uncertainty over the U.S. continued to support demand for the yellow metal.

The nonfarm payroll data for May, due later on Friday, is anticipated to be weaker, particularly after poor labor market readings during the week.

Trump’s economic policies, especially his tariff agenda, have introduced greater uncertainty, negatively affecting hiring trends.

A weaker labor market is likely hurting the dollar, which could prompt the Federal Reserve to lower interest rates.

Additionally, Trump reaffirmed his calls for the Fed to lower interest rates very soon.