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Gold to gain for the sixth consecutive week on demand for safe-havens

Gold to gain for the sixth consecutive week on demand for safe-havens

Gold prices rose Friday, and are on track to gain for the sixth week in a row as investors sought refuge in this safe-haven investment due to escalating tensions between China and the U.S.

As of 01:41 pm, spot gold rose 0.2% per ounce to $2861.46. ET (1841 GMT), which is up over 2% in this week after hitting a new record high of 2,886.62 earlier during the session.

U.S. Gold Futures closed 0.4% higher, at $2.887.60.

David Meger is the director of metals trading for High Ridge Futures. He said that the Trump tariff policy continues to be a major concern in the gold market.

The U.S. president Donald Trump kicked off a trade conflict this week by following through on his threats to impose new tariffs on China. He did, however, grant Mexico and Canada an one-month respite.

Gold is a popular investment in times of political or financial uncertainty.

Peter Grant, senior metals analyst at Zaner Metals, said that the gold market has also been buoyed both by continued growth of gold held by the People's Bank of China and a Chinese program allowing investment funds to buy gold.

A Labor Department report revealed that the U.S. added 143,000 new jobs in January. This was compared to the 170,000 predicted by economists. The unemployment rate also stood at 4% compared to the 4.1% expected.

Bart Melek is the head of commodity strategy at TD Securities. He said that wage growth and job creation have a negative impact on the Federal Reserve’s ability to change rates. This creates a unique, yet advantageous, situation.

Chicago Fed President Austan Gollibee stated that a strong economy, with full employment, and an easing of inflation, should allow the Fed cut rates. However, tariff uncertainty calls for caution.

Silver spot fell by 0.8%, to $31.94 an ounce. Platinum fell by 0.3%, to $982.50. Palladium fell 0.7% to $971.62.

Palladium, silver and platinum are all heading for gains for the week.

(source: Reuters)