Gold prices increase, poised for weekly gains after soft US labor data pressures yields

Gold prices climbed in Asian trading on Friday, continuing their upward trend from the previous session as signs of a cooling U.S. labor market impacted the dollar and Treasury yields, boosting the appeal of gold.

The precious metal was on track to end a two-week losing streak, supported by safe haven demand amid concerns about a potential escalation between Israel and Hamas, as well as reports of new U.S. trade tariffs on China.

Spot gold rose to $2,354.06 an ounce, while gold futures expiring in June increased to $2,360.75 an ounce

Gold set for weekly gains as rate cut speculation rises Spot prices were poised to gain more than 2% for the week, marking their first positive performance in three weeks. Nevertheless, they remained below the record highs reached in late April.

Gold prices surged on Thursday following data showing a larger-than-expected rise in weekly U.S. jobless claims. This, combined with a weaker-than-expected April nonfarm payrolls report, fueled expectations that a slowing labor market could lead the Federal Reserve to consider early interest rate cuts.

Traders slightly increased bets on a September rate cut, with the probability of such a move now near 50%, according to the CME FedWatch tool.

U.S. Treasury yields fell sharply on Thursday, as did the dollar, contributing to the overall strength in metal prices.