The price of spot gold is up 0.13 percent this week and was at $1,414.58 an ounce at 12.33pm BST, according to live data from Bullion By Post. If prices remain steady, it would mark a seventh consecutive weekly rise as investors wait for US employment data that could influence expectations about aggressive policy easing by the Federal Reserve. Bullion has gained more than 12 percent, or $150, in almost two months after falling to a 2019 low of $1,265.85 in early May. Analysts suggest the gold rush has been driven by dovish outlook from major central banks and an escalation in tensions between the US and Iran.
Investors often flock to the precious metal in times of economic uncertainty as the commodity is traditionally seen as a safe haven asset.
Michael McCarthy, chief market strategist at CMC Markets, said: “We have a key event tonight for the global economy that is US non-farm payrolls numbers.
“If they come in weaker than expected, we will see confirmation of one of the key supports for gold that is lower interest rate environment.”
The Fed will hold its two-day policy meeting on July 30 and 31 and analysts are predicting there will be at least a quarter percentage point reduction.
Global markets have been left rattled in recent weeks with fears of a global slowdown in growth escalating amid the ongoing trade war between the US and China.
Both nations have been at loggerheads for several months and have been slapping sanctions on the opposing side.
The Fed suggested it was ready to battle growing global and domestic economic risks, signalling a rates cut could come next month.
Among other precious metals, silver fell 0.3 percent to $15.23 per ounce, while platinum edged 0.1 percent higher to $833.18.
Palladium rose 0.2 percent to $1,565.05 an ounce and was heading for a fifth straight weekly gain.
Speaking at the end of June, analysts at Citibank predicted the price of gold could reach as high as $1,500 by the end of the year.
Robin Bhar, Societe Generale analyst, was equally optimistic last month and said: “The stars seem to be aligning for the gold market.”
But he remained cautious and said the only concern is if the Fed does not go through with rate cuts.
He added: “Longer term, rates do seem to be coming down and the dollar seems to have peaked.”