By Anmol Choubey
(Reuters) – Gold prices rose on Friday and were on track for a sixth consecutive week of gains as escalating trade tensions between the U.S. and China prompted investors to seek refuge in the safe-haven asset.
Spot gold gained 0.6% to $2,873.63 per ounce as of 09:33 a.m. ET (1433 GMT), rising more than 2% this week.
U.S. gold futures added 0.7% to $2,897.50.
“Central focus of the gold market continues to be the uncertainty in regards to the Trump tariff policies,” said David Meger, director of metals trading at High Ridge Futures.
Earlier this week, U.S. President Donald Trump kick started a trade war as he followed through on his threat to impose duties on China. Meanwhile, Trump granted Mexico and Canada a one-month reprieve.
Gold, used as a safe investment during times of political and financial uncertainty, rose to an-time high of $2,882.16 on Wednesday amid trade war concerns.
Meanwhile, A Labor Department report showed the U.S. economy added 143,000 jobs in January, compared with a rise of 170,000 expected by economists, whereas the unemployment rate stood at 4%, compared with the expectations of 4.1%.
Wage growth and declining job creation reflects market uncertainties and potential inflation, and challenging the Federal Reserve’s ability to adjust rates, actively shaping a uniquely complicated yet potentially advantageous situation, said Bart Melek, head of commodity strategies at TD Securities.
A strong economy with full employment and easing inflation allows the Fed to cut rates, but tariff uncertainties call for caution, Chicago Fed President Austan Goolsbee said.
Elsewhere, China will allow some of its insurance funds to buy gold for medium- and long-term asset allocations as part of a pilot project, the country’s financial regulator said.
Spot silver rose 0.7% to $32.41 per ounce and platinum added 0.7% to $992.15. While palladium fell 0.8% to $970.50.
Silver and platinum were headed for weekly gains, while palladium was down 3.7% for the week.
(Reporting by Anmol Choubey in Bengaluru; Editing by Nick Zieminski)
