Gold prices near 4-week high ahead of key jobs report

MUSCAT : Spot gold edged up 0.1% to $2,664.30 an ounce, while U.S. gold futures gained 0.4% to $2,681.80, continuing an upward trend spurred by expectations around Federal Reserve interest rate policy.

Gold’s rise follows a weaker-than-expected U.S. private sector employment report earlier this week, which signaled the Federal Reserve might adopt a less aggressive approach to interest rate hikes in 2025. With the latest jobs data set to provide further insight, markets remain on edge.

Adding to the anticipation is the upcoming January 20 inauguration of U.S. President-elect Donald Trump. His proposed protectionist policies are expected to spur inflation, reinforcing gold’s role as a hedge against rising prices. However, higher interest rates typically reduce the appeal of non-yielding assets like gold.

Meanwhile, the World Gold Council reported a notable milestone: gold-backed exchange-traded funds (ETFs) experienced their first inflow in four years, signaling renewed investor interest.

In the broader precious metals market, spot silver gained 0.2% to $30.17 an ounce. However, platinum dipped 0.3% to $952.54, and palladium slid 0.8% to $921.37.