Gold prices are poised for their biggest weekly jump in four months on August 2, supported by expectations that the US Federal Reserve will start cutting interest rates in September, as markets await key jobs report for further cues.
Spot gold was up 0.7 percent at $2,463.45 an ounce, as of 0915 GMT, just $22 shy of the record peak of $2,483.60 scaled on July 17. The yellow metal is on track for its biggest weekly gain since April 5.
US gold futures climbed 1.1 percent to $2,507.80.
"Gold prices are buoyed by rising expectations of rate cuts, driven by recent weak U.S. economic data… additionally, fears of a retaliatory strike by Iran and its proxies in the Middle East are bolstering gold's appeal as a safe haven," Zain Vawda, market analyst at MarketPulse by OANDA told news agency Reuters.
The bullion is considered a hedge against geopolitical tensions and economic risks and lower rates reduce the opportunity cost of holding the asset.
Investors will monitor the US payrolls report due later on August 2.
Fed chair Jerome Powell said on July 31 that interest rates could be cut as soon as September if the US economy follows its expected path.
Global firm UBS expects gold purchases by central banks to remain strong.
Spot silver added 1.2 percent to $28.9 an ounce, platinum rose 1.4 percent to $972.35 and palladium 0.7 percent to $911.86. All three metals were headed for weekly gains.
(With agency inputs)
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