Gold targets $4,254 as weekly gains surpass 5%

Gold prices firmed on August 7, staying on track for their biggest weekly gain since January as lower oil prices and key U.S. payrolls data bolstered market sentiment, Reuters reported.

Spot gold rose 0.4% to $4,254.11 per ounce, posting a weekly gain of over 5%. U.S. gold futures traded 0.3% higher at $4,312.00. Among other precious metals, spot silver gained 0.8% to $61.96 per ounce, platinum advanced to $1,735.71, and palladium settled at $1,367.06.

Declining energy prices helped ease inflation concerns, allowing gold to break out firmly above its $4,000 support level. Market participants are now closely monitoring the U.S. Labor Department's nonfarm payrolls report for signals regarding the Federal Reserve's interest rate trajectory.

N.Tebrizli