Economy

Gold pares losses from index rebalancing, steadies ahead of US jobs data

U.S. gold futures for February delivery firmed 0.4% to $4,477.70.

Gold prices pared early losses on Friday, ​as investors weighed geopolitical against the ongoing rebalancing of commodity indexes, with focus also turning to a crucial U.S. ⁠non-farm payrolls report due later in the day.

Spot gold edged 0.2% lower to $4,465.96 per ounce as of ⁠0848 GMT, ‌still on track for a more than 2% weekly gain. Bullion hit a record high of $4,549.71 on December 26.

U.S. gold futures for February delivery firmed 0.4% to $4,477.70.

“Gold ⁠has shaken off some of the index rebalancing wobbles it suffered earlier, with investors keen to add gold to the portfolio in light of recent heightened geopolitical risks,” said Tim Waterer, KCM Trade’s chief market analyst.

The U.S. seized a Venezuela-linked oil tanker after a weeks-long pursuit ⁠on Thursday while the country also ​abducted and initiated prosecution proceedings against now-former President of Venezuela Nicolas Maduro.

Meanwhile, the Russian military said it had fired its hypersonic ‍Oreshnik missile at a target in Ukraine on Friday.

Gold prices could rise to $5,000 an ounce in the first half of ​2026 on rising geopolitical risks and debt, HSBC said.

Gold, considered a traditional safe-haven asset, also tends to do well in a low-interest-rate environment.

Investors are looking out for non-farm payrolls data due at 1315 GMT, with economists expecting modest job growth of 60,000 and a slight drop in the unemployment rate to 4.5% from 4.6%.

“If we see a relatively soft jobs print of below 70,000, that should keep the Fed on the rate-cut path this year,” Waterer added.

Elevated prices hit physical gold buying in India this week, while dealers in China hiked premiums over international rates as retail interest ⁠renewed after the holiday period.

Elsewhere, spot silver added 0.6% ‌to $77.37 per ounce after hitting an all-time high of $83.62 on December 29. The white metal was on track to log a more than 6% weekly rise.

Spot platinum was up 0.4% at $2,276.15 after ‌scaling a record of $2,478.50 ⁠last Monday. Palladium rose 3.1% to $1,840.26 per ounce. Both metals were set for weekly gains as well.

© ZAWYA

GLOBAL BUSINESS AND FINANCE MAGAZINE

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