Gold in positive waters on Friday ahead of the highly anticipated NFP release

LONDON (February 7) Gold’s price (XAU/USD) is holding on to gains this Friday, just shy of 0.50% on the day, after its small downbeat performance on Thursday. The pickup in the rally comes ahead of the US Nonfarm Payrolls (NFP) report later in the day. A weaker number would benefit Gold, with rate cut odds from the Federal Reserve (Fed) increasing.   

Meanwhile, headlines emerged on Friday that China’s central bank, the People's Bank of China (PBOC), has expanded its Gold reserves for a third month in a row. Even at fresh all-time high prices, the central bank bought roughly 0.16 million troy ounces in January, Bloomberg reports. Meanwhile, threats from US President Donald Trump to slap more tariffs on the Eurozone and other countries are keeping Gold supported as a safe haven for investors should the tariff war escalate further. 

Daily digest market movers: Silence from Trump

• Gold reserves held by the People’s Bank of China rose by 0.16 million troy ounces last month, according to data released Friday. The central bank resumed adding Gold reserves in November after a six-month halt that ended an 18-month buying spree, Bloomberg reports. 
• The US-China trade war, fears that President Donald Trump will follow through on threats to impose tariffs on other nations, and his unconventional geopolitical possible interventions are supporting Gold’s role as a safe haven in uncertain times. The bull run looks set to continue, with prices likely to hit $3,000 an ounce within three months, Citigroup Inc. said in a note, Bloomberg reports. 
• Zimbabwe’s Gold output rose to 3,134.34 kg in January, up from 2,375.32 kg a year earlier, Fidelity Gold Refinery said on Friday in an emailed statement, Reuters reported. It was mostly the smaller-scale miners who were good for the increase in output, while the larger mines declined in production. 
• At 13:30 GMT, the US Nonfarm Payrolls employment report for January is due. Expectations are for 170,000 new workers in the month compared to 256,000 in December. However, broad expectations are for a much softer number, according to several bank analysts and forecasters. 

FXStreet