Gold records its highest levels in a month and is heading for the largest weekly gains in a month and a half.

Gold prices continued to expand their gains for the fourth consecutive session during Friday’s trading, recording the highest level for the yellow metal in nearly a month, putting it on track for its largest weekly gain in six weeks.

Gold Now

In terms of trading, spot gold prices rose by about 0.38%, reaching $2,679.70 per ounce, the highest level recorded since December 13. Spot gold contracts are now heading towards a weekly gain of more than $40, the largest increase seen in six weeks.

Meanwhile, February futures for gold rose by 0.65%, recording $2,708.30 per ounce, and are currently on track for weekly gains of more than $50 per ounce.

What Contributed to Gold's Gains?

Investors in global markets adopted a cautious approach today, anticipating the release of key US labor market data later in the day, which increased investor demand for gold as a safe haven, especially amid concerns over potential impacts from Trump’s tariffs on the global economy.

On the other hand, gold priced in US dollars benefited from the weakness exhibited by the US dollar today as we await labor market data in the United States, which reduced the cost of holding gold for investors holding other currencies. The dollar index—measuring the performance of the US dollar against a basket of six other major currencies—remained stable at 109.178 points with little change.

Throughout the week, data showing that the People's Bank of China continued to purchase gold bullion during December significantly bolstered gold’s rise, given that China is the largest buyer of the yellow metal in the world. At the same time, the demand for gold increased as a hedge against potential economic disruptions after data revealed inflation in China recorded its lowest level since last March, despite government efforts to support the world’s second-largest economy.