Gold prices stable as safe-haven demand rises amid geopolitical uncertainty, supported by Fed rate cut speculation and China's gold reserves increase.

From Investing.com: 2025-03-10 04:25:00

Gold prices remained relatively unchanged on Friday, with weekly gains driven by safe-haven demand amid geopolitical uncertainty. The US nonfarm payroll report revealed lower-than-expected job growth in February, increasing the likelihood of the Federal Reserve cutting interest rates this year. The People’s Bank of China reported an increase in gold reserves, supporting the precious metal’s price. XAU/USD is expected to remain range-bound, with neutral sentiment between $2,894 to $2,927 per ounce.

The euro strengthened against the US dollar following a weaker-than-expected NFP report, suggesting a cooling US labor market and potential interest rate cuts by the Federal Reserve. EUR/USD rose during the Asian session but fell in European hours, with volatility expected to remain low. The divergence in monetary policy expectations between the ECB and the Fed narrowed, contributing to the euro’s recent rally.

The Australian dollar depreciated against the USD despite the weak NFP report, reflecting concerns about a potential global recession due to escalating trade tariffs. China’s economic slowdown and reduced consumer spending further weighed on the AUD. AUD/USD is expected to trade in a narrow range, with the Westpac Consumer Sentiment report likely to trigger volatility. A rise above 0.63900 is needed to reverse the bearish trend in AUD/USD.



Read more at Investing.com: Gold Bolstered by Fed Rate Cut Speculation and China’s Continued Buying