Gold prices rose on Friday, heading towards a positive week as demand for safe-haven assets was supported by uncertainty over U.S. trade policy and caution ahead of key U.S. jobs data. The precious metal, along with broader metals prices, benefited from a weaker U.S. dollar, which hovered near two-year lows amid limited positive indicators for the American economy. A sharp decline in Wall Street, triggered by an escalating public disagreement between President Donald Trump and billionaire Elon Musk, also boosted risk aversion. Spot gold increased by 0.5% to $3,368.86 per ounce, while August futures rose 0.5% to $3,392.27 per ounce by 08:38 AM GMT. An announcement by Trump of a positive call with Chinese President Xi Jinping, which could revive U.S.-China trade talks, did little to curb risk aversion. Additionally, heightened military operations between Russia and Ukraine further fueled safe-haven demand. Gold gained support from rising safe-haven demand as non-farm payroll data approached. Gold was on track for weekly gains of about 2.4%, with spot prices now approximately $140 below recent record levels. Demand for the yellow metal remained supported by growing uncertainty about the U.S. economy and trade tariffs. The non-farm payroll data, expected later on Friday, was anticipated to be weaker for May, following a series of lackluster labor market readings during the week. U.S. employment trends were affected by increased uncertainty over economic policy under the Trump administration, particularly its tariff agenda. A weaker labor market was expected to give the Federal Reserve more reason to cut interest rates, a concept that weighed on the dollar this week. Trump reiterated his calls for the Fed to cut interest rates soon. However, the central bank was still expected to leave interest rates unchanged when it meets later this year. Metal prices broadly benefited from the weaker dollar, heading for weekly gains. The U.S. dollar fell 0.5% this week and was close to its lowest level in two years, recorded in April. Platinum futures rose 1% to $1,154.0 per ounce, while futures increased 0.9% to $36,128 per ounce. Among industrial metals, the benchmark price on the London Metal Exchange (LON: ) rose 0.1% to $9,728.25 per ton, while U.S. copper futures climbed 0.1% to $4.9150 per pound.
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