Gold prices headed for biggest weekly gain in three months

Gold prices rose on the afternoon of September 5 and are on track for their strongest weekly gain in three months.

Gold bars are sold at a store in Tokyo, Japan. Photo: AFP/TTXVN

Market expectations of a rate cut by the US Federal Reserve (Fed) have strengthened the appeal of the precious metal, while investors await the release of US employment data later in the day.

At 14:41 (Vietnam time), the spot gold price increased by 0.1% to 3,548.09 USD/ounce. This precious metal has increased by 2.9% since the beginning of the week. The price of gold futures for delivery in December 2025 in the US also increased by 0.1% to 3,608.90 USD/ounce.

The ADP National Employment Report released by the US Research Institute showed that the number of applications for unemployment benefits in the country increased more than expected last week and the number of private sector jobs increased less than forecast in August 2025. Both figures show that the labor market is weakening.

Investors are focused on the US jobs report due at 1230 GMT. The report is expected to show 75,000 jobs were created in August, compared with 73,000 in July, according to a Reuters poll.

The short-term direction of gold depends on the US jobs report and its impact on interest rate cut expectations, bond yields and the US dollar, said Ole Hansen, an expert at Saxo Bank. He added that a weak jobs report would push gold prices to $ 3,650 an ounce, while support at $ 3,450-3,500 an ounce remains important.

Several Fed officials this week highlighted concerns about the labor market as a key factor in the rate cut, with traders expecting the Fed to cut rates by 25 basis points at its two-day policy meeting starting on September 17.

Gold prices hit a record high of $3,578.50 an ounce on September 3. The precious metal does not yield interest and typically performs well in low-interest-rate environments.

The combination of low borrowing costs, concerns about the Fed's independence, geopolitical risks, long-term interest rates being higher than short-term rates, along with a weak US dollar, all point to further gains for the precious metal, Hansen said.

In Vietnam, at 4:07 p.m. on September 5, Saigon Jewelry Company listed the price of SJC gold in the Hanoi market at 132.90 - 134.40 million VND/tael (buy - sell).

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Source: https://baohaiphong.vn/gia-vang-huong-toi-tuan-tang-manh-nhat-trong-ba-thang-520030.html