Gold prices climbed by more than 1% on Friday, putting the precious metal on track to record its first weekly gain in five weeks. The rise came as investors lowered their expectations that the U.S. Federal Reserve would move to raise interest rates.

The improvement in gold prices followed the release of weaker-than-expected U.S. employment data, which helped ease pressure on the precious metal and supported its rebound in global trading.

Gold Price Today

Spot gold rose 1.4% to $4,179.94 per ounce by 06:35 a.m. Abu Dhabi time, reaching its highest level since June 23.

U.S. gold futures for August delivery also increased by 1.6% to $4,193.20 per ounce.

The yellow metal is heading for a weekly gain of about 2.3%, its first since the week that began on May 25, after a period of declines and pressure that affected the market over the past several weeks.

U.S. Jobs Data Supports Gold

Weaker-than-expected U.S. nonfarm payrolls and private-sector employment data helped calm concerns related to inflation and slightly reduced expectations of tighter monetary policy.

Traders’ bets on a September interest rate hike fell to around 54%, according to CME Group’s FedWatch tool, down from about 66% before the data was released.

Higher interest rates usually weigh on gold because it does not generate a yield, while interest-bearing assets become more attractive to investors.

Weaker Dollar Boosts Gold Gains

The U.S. dollar was headed for a weekly decline, giving gold additional support. A weaker dollar makes the precious metal less expensive for buyers holding other currencies.

Dollar weakness is one of the key factors that can help lift gold prices, especially when it comes alongside lower expectations for U.S. interest rate hikes.

Prices of Other Precious Metals

In the precious metals market, spot silver rose 2.3% to $62.43 per ounce.

Platinum also advanced 2.7% to $1,660.05, while palladium gained 1.3% to $1,284.40.

The three metals reached their highest levels in more than a week and are also heading for weekly gains, supported by gold’s rise and improved performance across precious metals in global markets.

Gold Outlook in the Coming Period

The direction of gold prices remains linked to upcoming U.S. economic data, as well as movements in the dollar and expectations for interest rates.

With the chances of a rate hike easing and continued pressure on the dollar, gold may hold on to part of its gains, while investors await new signals from the Federal Reserve about the path of monetary policy.