Gold Prices Rise Slightly Amid Geopolitical Tensions

Gold prices experienced a modest increase during Asian trading on Friday as investors looked for insights on U.S. interest rates from upcoming payroll data. This increase was partly fueled by ongoing geopolitical concerns, which stimulated safe haven demand.

The yellow metal seemed poised for a quiet end to the week, influenced by uncertainties surrounding long-term interest rate trends. Additionally, the resilience of the dollar impacted broader metal markets.

Spot gold rose 0.4% to $2,642.03 an ounce, while February gold futures increased by 0.6% to $2,663.72 an ounce as of 22:59 ET (03:59 GMT).

Geopolitical Influences

France's government collapse and a failed martial law attempt in South Korea contributed to the safe haven demand, alongside ongoing tensions in the Middle East and between Russia and Ukraine.

Nonfarm Payrolls Awaited for Rate Cues

Focus on Payroll Data

Attention has shifted to the crucial nonfarm payrolls data for November, set to be released later today. A notable rebound in payroll growth is anticipated, recovering from disruptions caused by hurricanes in October.

This payroll data will likely influence perspectives on future interest rate adjustments. A strong labor market may reduce the justification for the Federal Reserve to cut interest rates.

This data arrives just ahead of the Fed's final meeting of the year, where a 25 basis point rate cut is widely expected. However, recent statements from Fed officials and the possibility of expansionary policies under incoming President Donald Trump have raised questions about future rates.

Fed Chair Jerome Powell highlighted the strength of the U.S. economy, suggesting it provided the Fed with more flexibility regarding potential future cuts.

Higher interest rates generally have adverse effects on gold and similar non-yielding assets due to increased opportunity costs.

Precious Metals

Other precious metals also saw gains on Friday but have recorded losses through November. Platinum futures rose 0.7% to $951.55 an ounce, and silver futures increased by 1.3% to $31.935 an ounce.

Copper Prices Rise Amid Supply Concerns

In the industrial metals sector, copper prices rallied due to reports that leading miners have agreed to lower processing fees for 2025, amid fears over a tightening supply of copper concentrate in spot markets.

Copper futures on the London Metal Exchange went up by 0.5% to $9,136.0 a ton, while February futures increased by 0.6% to $4.2235 a pound.

Reports indicated that Chile’s Antofagasta and China’s Jiangxi Copper had significantly reduced fees for processing copper concentrate for 2025. These fees typically drop when there is less concentrate available in spot markets, signaling tighter supplies.

Next week, key economic data from China, including inflation and trade statistics, is anticipated, alongside the Central Economic Work Conference, which will provide further insights into the economy and potential stimulus measures.