Gold prices ended this week on the rise, with spot gold contracts rising in Friday’s trading by 0.71% to $2,362.49 per ounce. US gold futures for June delivery also witnessed a larger increase, rising by 1.26% to $2,369.60. Crude oil prices also rose, supported by escalating tension in the Gaza Strip.
The precious metal’s gains were reinforced by disappointing US jobs data, which reinforced expectations that the Federal Reserve may cut interest rates to support economic growth. US jobs data released yesterday, Thursday, which indicated a higher-than-expected number of unemployment claims, strengthened the attractiveness of gold as a safe haven asset.
Silver and other metals
While gold rose, silver fell slightly in spot transactions, falling by 0.47% to $28.203 per ounce. On the other hand, platinum and palladium saw gains, with platinum rising 1.63% to $993.90 an ounce and palladium rising 1.71% to $983.50.
Crude oil rises amid strong demand
Brent crude prices also saw a slight rise, largely driven by strong demand signals from the United States and China, two of the world’s largest oil consumers. By 13:14 GMT, Brent crude futures increased 33 cents to $84.21 per barrel, while US West Texas Intermediate crude increased 42 cents to $79.68.
Reports of a decline in US crude inventories and a rise in Chinese oil imports in April confirmed this demand.
The ongoing tensions in the Middle East, especially after the recent Israeli military operations in Rafah, Gaza, play a decisive role in supporting oil prices. Uncertainty surrounding ceasefire negotiations and potential broader regional conflicts, especially related to Iran, continue to pose risks to the stability of oil supplies.
Economic indicators and market forecasts
Investors remain cautious, with the upcoming US economic data on the Producer Price Index and Consumer Price Index expected to be released next week.
These indicators could affect the Federal Reserve’s decisions on interest rates, which in turn could affect commodity prices. Likewise, expectations are growing that the European Central Bank may begin cutting interest rates next June.
Despite the current price increases, analysts from Citibank expect oil prices to decline throughout 2024. They expect Brent crude to reach $86 a barrel in the second quarter before falling to $74 in the third quarter, pointing to a potential slowdown in global demand growth. .