Gold prices climbed on Friday, fueled by a resilient US jobs report and growing optimism for a de-escalation in the US-Iran conflict. Spot gold rose 0.8% to $4,723.28 per ounce, marking a total gain of 2.4% for the week.
New data revealed that US employment increased more than expected in April, while the unemployment rate remained steady at 4.3%. Typically, a strong labor market boosts the dollar and hurts gold; however, analysts noted that bullion is currently trading more like a "risk asset" than a traditional safe haven.
The price rebound is closely tied to hopes of a ceasefire in the Middle East. Despite recent clashes in the Gulf, statements regarding a holding ceasefire have lowered energy price concerns. This shift has led investors to speculate that the Federal Reserve may have more room for interest rate cuts later this year. According to the CME FedWatch tool, the probability of further rate hikes this year has dropped from 22% to 14%.
In Asia, gold demand remained mixed. While Chinese buyers maintained steady interest due to safe-haven needs, the price recovery in India caused local buyers to postpone purchases, leading to a muted week for the Indian market.
Other Precious Metals
Silver: Rose 3.1% to $80.88 per ounce.
Platinum: Gained 0.2% to $2,026.80.
Palladium: Slipped 0.3% to $1,476.18, ending the week down nearly 3%.
