Gold rises as weak US data outweighs optimism from Trump-Xi call

Gold rose on Friday and was set for weekly gains, as a spate of soft U.S. economic data outweighed initial optimism over U.S. President Donald Trump’s call with his Chinese counterpart Xi Jinping, while investors awaited U.S. payroll data.

Spot gold was up 0.5% at $3,368.49 an ounce, as of 0340 GMT. Bullion has gained 2.5% for the week so far.

U.S. gold futures climbed 0.5% to $3,391.40.

Trump and Xi engaged in a rare leader-to-leader call on Thursday, addressing escalating trade tensions and disputes over critical minerals, though key issues remain unresolved.

“Some of the initial enthusiasm for risk appetite following the Trump-Xi call has started to wear off, which has enabled gold to creep higher,” said Tim Waterer, chief market analyst at KCM Trade, adding, as Trump’s optimistic take masked recent weak U.S. economic data earlier.

The number of Americans filing new applications for unemployment benefits increased to a seven-month high last week.

Investors are now awaiting U.S. nonfarm payroll data due at 12:30 GMT, after a slew of data throughout this week highlighting labor market softness.

Economists polled by Reuters forecast nonfarm payrolls increased by 130,000 jobs in May, down from 177,000 in April, while the unemployment rate is expected to remain steady at 4.2%.

“The upcoming NFP release could be the catalyst for a breakout should the data produce a significant miss on either side of expectations,” Waterer said.

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Fed policymakers indicated that inflation remains a greater concern than labor market cooling, suggesting a prolonged hold on monetary policy adjustments.

Gold, often seen as a safe-haven asset, tends to perform well during economic uncertainty and in low-interest-rate environments.

Spot silver fell 0.4% to $35.99 per ounce, still hovering near a 13-year high, while platinum rose 1.7% to $1,149.88 and palladium was up 0.8% at $1,014.31.

All three metals were headed for weekly gains.