Gold prices edged higher on Thursday, supported by a dip in the US dollar. Investors are closely watching the upcoming US nonfarm payrolls data, scheduled for release on Friday. This data is crucial for predicting the Federal Reserve’s next moves on interest rates, especially as global trade tensions continue to escalate.
Spot gold rose by 0.1%, reaching $2,921.19 per ounce. At the same time, US gold futures increased by 0.1% to $2,929.30. The weakness in the dollar helped gold maintain its upward momentum. The dollar index, which tracks the US currency against other major currencies, hovered near a four-month low. This decline occurred after the US decided to exempt automakers from a 25% tariff on goods from Canada and Mexico, as long as they complied with existing free trade agreements.
Jigar Trivedi, senior analyst at Reliance Securities, commented, “A potential delay in the tariff war by the US has pushed the dollar lower. As a result, gold remains supported.” The ongoing tariff war has caused strain in relations between the US, Canada, Mexico, and China. While Canada and China have imposed their own tariffs on US imports, Mexico has also threatened to retaliate.
Worries surrounding President Trump’s tariffs helped gold reach a record high of $2,956.15 on February 24. Gold has gained more than 11% year-to-date, driven by political uncertainty and fears of inflation. Market strategist Yeap Jun Rong remarked, “The $3,000 psychological level for gold is increasingly within reach as prices resume their upward trajectory.”
Looking ahead, all eyes are on the nonfarm payrolls report. Economists predict a gain of 160,000 jobs for February, which could provide further insight into the Federal Reserve’s policy stance.
In addition to gold, other precious metals saw mixed movements. Spot silver dropped by 0.1%, reaching $32.6 per ounce, while platinum remained steady at $965.60. Meanwhile, palladium rose by 0.2%, reaching $944.00.
Gold’s upward momentum remains strong, with many expecting it to continue climbing as long as the US dollar remains weak. Investors are hopeful for positive nonfarm payrolls data, which could add further support to gold prices.
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