Gold price gains ground due to increased risk aversion amid raised concerns about the US economy.
The safe-haven demand for the yellow metal received support from escalated geopolitical tensions in the Middle East.
The dovish mood surrounding the Fed’s policy outlook supports non-yielding assets like Gold.
Gold price (XAU/USD) edges higher to near $2,450 per troy ounce during the Asian session on Friday. Traders await upcoming US labor market data, including the Nonfarm Payrolls and Average Hourly Earnings data for July. Recent manufacturing and employment data have raised concerns about the US economy, boosting risk aversion and supporting the safe-haven Gold.
US ISM Manufacturing Purchasing Managers Index (PMI) tumbled to an eight-month low of 46.8 in July, compared to the previous 48.5 reading and the forecasted move up to 48.8. US Initial Jobless Claims for the week ended July 26 rose to 249K from the previous week’s 235K, lurching past the forecast uptick to 236K.
Additionally, the safe-haven demand for Gold increases due to escalated geopolitical tensions in the Middle East. Tensions in the Middle East remain high following the assassination of Hamas leader Ismail Haniyeh in Iran
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