Gold Prices Near Worst Weekly Performance

Gold prices were on track to record their most significant weekly decline in over two months on Friday. This downturn is attributed to easing trade tensions, which have diminished the demand for gold as a safe-haven asset. Market participants are now keenly awaiting the U.S. non-farm payrolls report, scheduled for release later in the day.

Spot gold remained stable at $3,239.15 per ounce as of 0206 GMT.

The price of gold has decreased by more than 2% this week, marking the most substantial weekly drop since late February.

U.S. gold futures experienced a rise of 0.8%, reaching $3,247.90.

Expert Analysis

According to Brian Lan, Managing Director at GoldSilver Central in Singapore, the market is experiencing a period of consolidation, with bears currently exerting control. This shift has spurred retail buying activity.

Trade War Developments

The U.S. has initiated communication with China to explore discussions regarding President Donald Trump’s 145% tariffs. China’s Commerce Ministry indicated on Friday that Beijing is open to negotiations, suggesting a potential reduction in trade hostilities.

Lan from GoldSilver Central noted that the easing of tariffs and increased willingness of both the U.S. and China to negotiate are contributing to the downward pressure on gold prices.

As a safe investment during times of political and financial instability, bullion reached a record high of $3,500.05 per ounce on April 22, driven by investors seeking refuge from global economic uncertainties.

In other economic news, U.S. manufacturing activity contracted for the second consecutive month in April due to the impact of tariffs on imported goods, which strained supply chains, elevated factory gate prices, and led to workforce reductions in some companies.

The U.S. non-farm payrolls report, due at 1230 GMT, is expected to offer further insights into the Federal Reserve’s policy direction.

In Pakistan, the gold price per tola decreased by Rs3,400.

A recent survey suggests that non-farm payrolls likely saw an increase of 130,000 jobs in April, following a rise of 228,000 in March.

The unemployment rate is projected to remain steady at 4.2%.

Chinese markets are currently closed for the Labour Day holiday from May 1-5 and will resume trading on Tuesday, May 6.

Spot silver saw a 0.5% increase to $32.57 an ounce, platinum rose by 0.8% to $966.59, and palladium increased by 0.9% to $948.74.