Gold prices surged in Asian trade, with spot gold rising by 0.3% to $2,354.06 an ounce and gold futures for June delivery jumping by 0.9% to $2,360.75 an ounce by 00:53 ET (04:53 GMT). Spot prices are poised to add more than 2% for the week, marking their first positive week in three, albeit still below late-April record highs.
The uptick in gold prices followed reports of a larger-than-expected increase in weekly U.S. jobless claims, reinforcing expectations of potential early interest rate cuts by the Federal Reserve due to a cooling labor market. Traders are now slightly increasing bets on a September rate cut, with expectations standing at nearly a 50% chance according to the CME Fedwatch tool. As a result, U.S. Treasury yields fell sharply on Thursday, alongside the dollar, contributing to stronger metal prices across the board.
Platinum futures rose by 0.2% to $994.80 an ounce, while silver futures jumped by 1% to $28.657 an ounce, with both metals also trading up 3% and 7.4%, respectively, for the week. Industrial metal prices, including copper, were bolstered by weakness in the dollar. Three-month copper futures on the London Metal Exchange rose by 0.5% to $10,013.50 a ton, and one-month copper futures increased by 0.6% to $4.6327 a pound, both nearing recent two-year peaks.
However, further momentum in copper prices faced resistance due to mixed signals from top importer China. While the country implemented more supportive policies for its property market, data indicating a drop in Chinese copper imports raised concerns about sustained demand. Moreover, reports of the U.S. considering additional trade tariffs on China also impacted sentiment towards the country.