Gold Prices Rise on Middle East Conflict, U.S. Payrolls Report in Focus #

Gold prices increased on Friday, bolstered by safe-haven demand due to the ongoing Middle East conflict. Market attention has now shifted to the upcoming U.S. payrolls report, which is expected to provide insights into the Federal Reserve’s future policy decisions.

Spot gold rose 0.3% to $2,662.50 per ounce, after reaching an all-time high of $2,685.42 earlier in the week. The precious metal has gained 0.2% for the week. U.S. gold futures also saw a slight increase of 0.1% to $2,682.10.

The dollar index eased 0.1%, retreating from a one-month high, making gold more attractive for holders of other currencies.

Geopolitical tensions, particularly those involving Israel and Iran, continue to support gold prices. Experts suggest that unless these risks subside, prices are likely to remain near record levels.

The United States is reportedly considering strikes on Iranian oil facilities in response to Tehran’s missile attack on Israel. Meanwhile, Israel’s military has conducted new air strikes on Beirut in its ongoing conflict with Hezbollah.

Gold is traditionally viewed as a safe-haven investment during times of political and financial uncertainty, and tends to perform well in low-interest-rate environments.

The U.S. nonfarm payroll data, due later today, is expected to influence market sentiment. If the report shows strong job growth, it could strengthen the dollar and potentially lead to some profit-taking in gold.

Currently, traders estimate a 69% probability of a 25-basis-point Federal Reserve rate cut in November.

Analysts predict that gold prices will likely trade within the range of $2,500 to $2,800 in the coming months.