Gold Prices Surge Amid Economic Concerns

Gold prices rose in Asian trade on Friday, nearing a record high as investors sought safe haven amid global market turmoil and economic slowdown fears.

Bullion experienced strong gains this week due to anticipated U.S. interest rate cuts, which negatively impacted the dollar and Treasury yields. Additionally, rising tensions in the Middle East, particularly following the killing of a Hamas leader, increased demand for gold.

Spot gold climbed 0.5% to $2,458.49 an ounce, with December gold futures increasing 0.9% to $2,502.60 an ounce by 01:18 ET (05:18 GMT).

Weekly Gains for Gold

Spot gold prices are poised for over 3% weekly gains, marking their best week since March. Safe haven demand strengthened as weak U.S. purchasing managers index and employment data heightened fears of a global economic slowdown.

These concerns led to significant declines on Wall Street, which affected Asian markets and pushed investors toward gold.

The weak economic data coincided with the Federal Reserve suggesting an interest rate cut in September, with markets now anticipating a 25 basis point reduction.

Market attention is shifting to upcoming nonfarm payrolls data for additional insights into the U.S. economy, as a cooling labor market increases the likelihood of Fed rate cuts. Lower interest rates typically boost precious metal prices by reducing opportunity costs associated with non-yielding assets.

Platinum futures rose 0.7% to $977.25 an ounce, while silver futures jumped 1.6% to $28.925 an ounce.

Copper Prices Reflect Economic Anxiety

In industrial metals, copper prices showed a slight rebound on Friday but were on track for their fourth consecutive week of losses due to fears that a global economic slowdown will impact demand.

Benchmark copper futures on the London Metal Exchange rose 0.2% to $9,073.0 per tonne, with one-month futures increasing 0.6% to $4.0900 per pound. Both contracts experienced mild declines this week, continuing a trend of four weeks of losses driven by weak PMI readings from the U.S. and China, indicating a slowdown in manufacturing activity.