PRECIOUS-Gold set for weekly gain on US payrolls miss, broader uncertainty

By Anmol Choubey

Jan 9 (Reuters) - Gold prices rose on Friday and were on track for a weekly gain, as investors weighed weaker-than-expected U.S. payrolls data along with broader policy and geopolitical uncertainty.

Spot gold XAU= was up 0.2% at $4,485.73 per ounce as of 9:33 a.m. ET (1433 GMT), and was set for an about 3.8% weekly gain. Bullion hit a record high of $4,549.71 on December 26.

U.S. gold futures GCcv1 for February delivery firmed 0.5% to $4,483.

U.S. nonfarm payrolls in December rose by 50,000, missing expectations of a 60,000 gain, while the unemployment rate eased to 4.4%, below forecasts of 4.5%.

"Payrolls are showing us a poor job creation environment. Potentially more (geopolitical tension), somewhat higher oil prices, which are inflationary, uncertainty and an easing Fed — all a combination for precious metals," said Bart Melek, global head of commodity strategy at TD Securities.

Market participants continued to factor in at least two Federal Reserve rate cuts this year, a backdrop historically favorable for gold. FEDWATCH

Geopolitical tensions remained elevated amid intensifying unrest in Iran, continued fighting in Russia's war in Ukraine, the U.S. capture of Venezuela's President Nicolás Maduro, and Washington's renewed signals over taking control of Greenland.

Metals Focus projected gold prices could hit fresh record highs above $5,000 in 2026, citing de-dollarization trends and geopolitical risks.

Investors are also closely watching a potential U.S. Supreme Court ruling on President Donald Trump's authority under the International Emergency Economic Powers Act to impose tariffs without congressional approval.

Retail demand for gold in India remained subdued due to elevated prices, while gold premiums in China widened. GOL/AS

Spot silver XAG= gained 2% to $78.42 per ounce and was on track to log an about 8.8% weekly rise.

Spot platinum XPT= rose 1% to $2,290.20 per ounce. Palladium XPD= climbed 2% to $1,831.18 per ounce. Both metals were set for weekly gains as well.

Bank of America raised its 2026 average platinum and palladium price forecasts, citing dislocations from trade disputes amid physical market tightness, while China's imports add support.