Gold traded near record levels on Friday, as investors remained cautious ahead of the US non-farm payrolls report. The metal remains supported by expectations of monetary easing and continued safe-haven demand amid global uncertainty.
Recent US data have reinforced dovish expectations. The ADP employment report showed weaker private payrolls, fuelling concerns about the job market. Traders now see a near-certainty of a 25-basis-point rate cut at the Fed’s September meeting and are betting on up to three cuts this year.
Geopolitical tensions continued to underpin safe-haven flows. Russia rejected Western security guarantees for Ukraine, while in the Middle East, Israel continued strikes on Gaza. On the demand side, central bank purchases remain a key driver.
Investors could monitor the release of the non-farm payrolls, which could strongly affect sentiment and monetary policy expectations. Any strong surprises could fuel volatility in gold prices.
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