Gold prices climbed on Friday, setting the stage for a strong weekly performance, as weaker-than-expected U.S. labor data fueled optimism about a potential Federal Reserve interest rate cut. Meanwhile, silver prices surged to their highest level in over 13 years.
As of 08:54 GMT, spot gold rose 0.4% to $3,367.45 per ounce, marking a weekly gain of 2.4%. U.S. gold futures also increased 0.5% to $3,390.70.
“The disappointing jobless claims data, which points to potential weakness in the labor market, had a greater impact on gold prices than the optimism stemming from President Trump’s call with President Xi,” said Alexander Zumpf, precious metals trader at Heraeus Metals Germany.
The boost in precious metal prices followed Thursday’s U.S. Labor Department report, which showed initial unemployment claims rose to a seven-month high, suggesting a cooling labor market.
In addition to economic data, geopolitical developments contributed to market sentiment. U.S. President Donald Trump held a rare phone call with Chinese President Xi Jinping on Thursday amid escalating trade tensions and disputes over critical mineral supplies.
Investors are now turning their attention to the highly anticipated U.S. non-farm payrolls report, expected at 12:30 GMT, which could further influence the Fed’s interest rate outlook and drive market momentum in gold and silver.
Silver prices, in particular, have shown remarkable strength, with the metal reaching its highest level in more than 13 years, supported by both safe-haven demand and industrial interest.
