Gold prices rose during Friday’s Asian trading, with rebalancing commodity indices leading to significant price fluctuations this week.
Spot gold was up 0.3% to US$4,465.31 per ounce by 3:10 pm AEDT (4:10 am GMT). Silver dipped 1.5% to $76.71.
Gold and silver prices have been volatile this week as the Bloomberg Commodity Index and S&P GSCI undergo their annual rebalancing, with spot gold dropping to $4,406.89 during U.S. trading.
These indices are rebalanced each January based on market liquidity. Price fluctuations are set to continue next week.
Gold prices could reach $5,050 per ounce in 2026’s first half, HSBC analysts wrote today. This is an increase from its prior forecast of $5,000.
“We see a wide range of $5,050-$3,950/oz for 2026 and an end-year price of $4,450/oz,” per HSBC.
HSBC dropped its average gold price forecast for the year from $4,600 to $4,587, saying that there could be a price correction in 2026’s second half, particularly if there are no further U.S. interest rate cuts. It raised its 2027 average price forecast from $3,950 to $4,625.
U.S. nonfarm payrolls data for December will be released on Friday (Saturday AEDT). Minneapolis Federal Reserve President Neel Kashkari said earlier this week that the labour market would be a deciding factor in determining future rate cuts.
Reuters-polled economists have projected the report will show an increase of 47,000 workers in the private sector.
