Gold prices rebounded on Friday as uncertainty surrounding the incoming Trump administration’s policies lifted safe-haven appeal, even as a stronger-than-expected U.S. employment data reinforced expectations the Federal Reserve might not cut interest rates as aggressively this year.
Spot gold was up 0.6% to $2,685.38 U.S. per ounce, while U.S. gold futures rose 1.3% to $2,726.10. Gold prices briefly slipped to $2,663.09 an ounce after data showed the U.S. added 256,000 jobs last month, compared with economists’ estimate of a rise of 160,000. The stateside unemployment rate stood at 4.1%, compared with a forecast of 4.2%.
Bullion prices, however, quickly rebounded and are now trading near their highest levels since Dec. 13, poised for a weekly gain of more than 1%.
While bullion is prized as a safeguard against inflation, high interest rates dull its allure as a non-yielding asset.