Gold Prices Rise Towards $2,400 as Rate Cut Expectations Increase Ahead of Payroll Data

Gold prices increased during Asian trading on Friday, approaching important resistance levels as expectations for interest rate cuts by the Federal Reserve grew ahead of significant nonfarm payroll data due later in the day.

The precious metal was on track for weekly gains, supported by a series of weak U.S. economic indicators that heightened predictions the Fed might start reducing rates in September. This sentiment contributed to a decline in the dollar, which fell to two-month lows.

Anticipation of interest rate reductions by the Fed, coupled with similar expectations from other central banks, further fueled optimism for a more accommodating monetary environment, which traditionally favors precious metals. Spot gold climbed 0.5% to $2,386.55 per ounce, while August futures rose 0.6% to $2,405.40 per ounce.

### Gold on Track for Weekly Gains as Nonfarm Payrolls Loom

Spot gold was poised to gain approximately 2.6% this week, as disappointing economic data—especially regarding the labor market—bolstered expectations for interest rate cuts. These figures were released just ahead of the crucial payroll data expected later on Friday, which is anticipated to provide more clarity regarding the labor market and interest rates.

This data arrives just before a Federal Reserve meeting next week, where it is largely expected that the central bank will maintain current rates. However, any indications regarding future monetary policy will be closely monitored, particularly in light of the recent easing of U.S. economic activity.

Other precious metals experienced gains on Friday, although their weekly performances were mixed. Palladium increased 0.3% to $1,014.40 per ounce, while platinum climbed 0.8% to $31.622 per ounce. In contrast, platinum saw a decline of 2.6%, while silver recorded an almost 4% increase for the week.

### Copper Prices Steady Amid Positive Chinese Data

In the realm of industrial metals, copper prices remained relatively stable on Friday, recovering from a sharp decline over the previous two weeks. However, encouraging copper import data from China provided some positive signals for the metal.

The benchmark copper price on the London Metal Exchange decreased by 0.3% to $10,116.50 per tonne, while one-month contracts dropped 0.4% to $4.6532 per pound. Data released from China indicated that while overall imports grew less than anticipated in May, copper imports saw a year-on-year increase of 2.6%. Additionally, China’s industrial output outpaced expectations, highlighting strong demand from both domestic and international markets.