By Polina Devitt
LONDON (Reuters) – Gold and silver prices rose on Friday, recovering from profit-taking during the previous session, while investors braced for U.S. payrolls data for further clues about the Federal Reserve’s interest rate outlook.
Spot gold added 0.1% to $2,745.99 per ounce by 1043 GMT. Prices fell by 1.5% on Thursday as some traders took profit after the precious metal hit a record high of $2,790.15.
“Despite Thursday’s correction, gold remains in a strong uptrend with several positive factors aligned to drive further gains,” said Hugo Pascal, precious metals trader at InProved.
Bullion rose by 4% in October due to investor anxiety about the U.S. Nov. 5 presidential election. Polls indicate a close race between Donald Trump and Kamala Harris.
The market is also awaiting the U.S. nonfarm payrolls report, due at 1230 GMT, for clues about the health of the world’s largest economy. The Fed is widely expected to deliver a 25-basis-point rate cut next week.
Citi said in a note that gold prices were on track to hit $3,000 per ounce over the next six months amid a deterioration in the U.S. labour market and demand from physically backed gold exchange-traded funds (ETFs).
Global gold ETFs, which had three consecutive years of outflows against a backdrop of high interest rates, saw a fifth consecutive month of inflows in September.
Meanwhile, high gold prices, which have risen 33% so far this year and are heading for the largest annual growth since 1979, continue to affect physical demand in major Asian regions.
In China, gold consumption fell by 11% in the first nine months of 2024. In India, the share of coins and bars in sales is rising as buyers are unwilling to pay increased making charges for jewellery. [GOL/AS]
Among other metals, spot silver rose 0.3% to $32.75 per ounce, while platinum gained 0.5% to $992.90 and palladium added 1.0% to $1,117.10.
(Reporting by Polina Devitt in London; additional reporting by Ashitha Shivaprasad in Bengaluru; editing by Barbara Lewis)
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