May 2 (Reuters) – Gold gained on Friday as investors rushed to buy the metal a day after its prices hit a two-week low amid receding trade tensions, while the market’s focus shifted to the U.S. non-farm payrolls report due later in the day.
Spot gold rose 0.5% to $3,256.51 an ounce, as of 0356 GMT.
Gold hit its lowest level since mid-April in the previous session and has lost nearly 2% so far this week, the steepest weekly fall since late February.
U.S. gold futures rose 1.3% to $3,265.10.
“There have been softening stance (on tariffs) and situation has improved a bit, but still there are a lot of uncertainties so gold will still be preferred by investors,” said ANZ Commodity Strategist Soni Kumari, adding that every price correction in gold is seen as a buying opportunity.
“If prices continue to decline and approach the $3,000 level, it could attract a lot of investment demand.”
Beijing is “evaluating” an offer from Washington to hold talks over U.S. President Donald Trump’s crippling tariffs, China’s Commerce Ministry said, signalling a potential de-escalation in the trade war that has roiled global markets.
Bullion, a safeguard against political and financial turmoil, last soared to a record high of $3,500.05 on April 22.
The market now awaits the U.S. non-farm payrolls report due at 1230 GMT for more cues on the Federal Reserve’s policy path.
Non-farm payrolls likely increased by 130,000 jobs in April after rising by 228,000 in March, a Reuters survey showed.
Chinese markets are closed for the Labour Day holiday from May 1-5 and will resume trade on Tuesday, May 6.
The dollar fell 0.3% against its rivals, making gold more attractive for other currency holders.
Spot silver rose 0.9% to $32.68 an ounce, platinum firmed 1.1% to $968.89 and palladium gained 1% to $949.48.
Except for the picture, this story has not been edited by The Sen Times staff and has been published from a syndicated feed.
