Gold Closes Out Week on a High Note Amid Weakened Expectations of Future Federal Reserve Rate Hikes

Gold Prices Trim Weekly Loss as Traders Bet on Monetary Easing

Gold advanced, reversing a weekly decline, as traders increased bets on Federal Reserve rate cuts following a weak US jobs report. The report showed that US employers unexpectedly cut jobs in February, with the unemployment rate rising, indicating lingering fragility in the labor market.

Gold prices rose as much as 1.8% to $5,174.59 an ounce, reducing its weekly decline to 2.3%. Lower interest rates typically benefit non-yielding gold, as they increase the metal's allure as a safe-haven asset. The precious metal had come under pressure this week due to the Middle East conflict, which sent oil prices surging and fueled inflation concerns, while the dollar rallied.

Bullion also served as a source of liquidity amid a deepening rout in global equities. The US jobs report was released on a weak note, with US employers cutting jobs in February and the unemployment rate rising. The situation has added to concerns about the labor market's stability.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Spot gold rose 1.5% to $5,157.42 an ounce as of 3:52 p.m. in New York. Silver climbed 2.1% to $83.93, while platinum advanced and palladium slipped.