Gold and silver prices were higher on the last trading day of the week as investors waited for key economic data releases.
Precious metals have started the new year with an increase in value.
However, these gains are less than the peaks reached just under two weeks ago, following a significant drop at the close of the previous year.
Oil prices were also higher on Friday as concerns over supply disruption in Iran and Venezuela boosted sentiment.
Base metal prices were also trading in the green as the contracts headed for the end of a volatile week.
Gold and silver rise
Caution ahead of crucial US employment data kept investors on the sidelines on Friday, resulting in largely steady gold prices.
Gains were capped, however, by the dollar’s strength.
A stronger dollar makes commodities priced in the greenback more expensive for overseas investors, thereby limiting demand.
The US dollar reached a one-month peak as markets anticipated an imminent Supreme Court ruling regarding President Donald Trump’s authority to use emergency tariffs.
Meanwhile, a Reuters survey forecasts that US nonfarm payrolls likely grew by 60,000 jobs last month, with the unemployment rate expected to dip to 4.5%.
The prospect of US interest rate cuts could be strengthened by a disappointing US labour market report.
“However, we expect the Fed to hold steady in January and wait for further data points,” Barbara Lambrecht, commodity analyst at Commerzbank AG, said in a report.
Fed Funds Futures are now pricing in less than half of a 25 basis point rate cut by March.
Meanwhile, silver prices on COMEX were 3.6% higher at $77.817 per ounce at the time of writing.
Oil set for strong weekly gains
Concerns over potential disruptions to oil output from Iran, coupled with uncertainty regarding Venezuela’s supply, drove oil prices higher on Friday.
At the time of writing, the price of West Texas Intermediate crude oil was at $58.30 per barrel, up 0.9%, while Brent was at $62.57 a barrel, also up 0.9% from the previous close.
Following two consecutive days of declines, both benchmarks saw a gain of over 3% on Thursday.
This puts Brent on track for a weekly climb of 2.8%, while WTI has secured a 1.5% gain for the week.
Supply concerns have intensified due to civil unrest in major Middle Eastern producer Iran and fears that the Russia-Ukraine war could disrupt Russian oil exports.
In a related development, the White House is scheduled to meet with oil companies and trading houses on Friday to discuss potential oil export deals with Venezuela.
This meeting comes just days after the US captured Venezuelan President Nicolas Maduro on Saturday.
Following the capture, Trump demanded full US access to Venezuela’s oil sector, with American officials stating that Washington will maintain control over the country’s oil sales and revenue indefinitely.
“Nevertheless, the flow of news surrounding the situation in Venezuela is likely to continue to preoccupy the oil market in the short term,” Lambrecht said.
It is not only the actions of the US that are of interest, but also the further reactions of Venezuela’s ally Russia and China, which has been a major buyer of Venezuelan oil.
Copper surges around 2%
Record-high prices, with copper exceeding $13,000 per ton on the London Metal Exchange, have led to decreased demand from Chinese industrial users.
Chinese industry, which consumes half the world’s copper, is struggling to absorb these elevated costs, resulting in reduced output and rising inventories, as it cannot easily pass the price increases to manufacturers.
Nevertheless, an eventual improvement in conditions is anticipated later in the year.
This optimism is fueled by expected copper consumption growth in the new energy and artificial intelligence sectors, alongside supportive government measures aimed at boosting domestic consumption, according to Neil Welsh, head of metals at Britannia Global Markets.
At the time of writing, the three-month copper contract on LME was at $12,965.55 per ton, up 2.1% from the previous close.
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