Gold Prices Hold Near Record Highs, Set for Sixth Weekly Gain Amid Trade War Jitters

Gold prices rose on Friday, hovering near record levels and poised for a sixth straight weekly gain as trade war concerns fueled safe-haven demand ahead of the key U.S. payrolls report.

Spot gold climbed 0.4% to $2,866.58 per ounce as of 0506 GMT, gaining more than 2% this week. The metal reached an all-time high of $2,882.16 on Wednesday. U.S. gold futures also advanced 0.4% to $2,888.70.

"It's still a trending market, and we will continue to see gold prices pushing to new heights because now it's uncharted territory," said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.

Earlier this week, the World Trade Organization reported that China had initiated a dispute over U.S. tariffs. Goldman Sachs noted upside risks to its $3,000 gold price target, citing a potentially prolonged boost from elevated U.S. policy uncertainty and increased central bank and investor hedging demand.

Market focus now shifts to the U.S. employment report, due at 1330 GMT, for insights into the Federal Reserve’s interest rate trajectory.

Chicago Fed President Austan Goolsbee stated on Thursday that a strong labor market with solid growth and declining inflation would support continued Fed rate cuts. However, uncertainty surrounding tariffs and policy changes suggests a more cautious approach.

Gold is traditionally seen as a safe-haven asset during economic and geopolitical instability, though higher interest rates diminish its appeal by increasing the opportunity cost of holding non-yielding assets.

"We expect the Fed to cut another 100 basis points this cycle, which will drive U.S. Treasury yields lower and reduce the holding cost for gold," ANZ said in a note.

In other metals, spot silver remained steady at $32.22 per ounce, while platinum was flat at $985.80. Palladium inched up 0.1% to $979.80. Silver and platinum were on track for weekly gains, while palladium faced a weekly decline.