Gold prices surged by 1% on Friday, primarily due to a weaker dollar and increased safe-haven demand
This was triggered by strikes initiated by the United Auto Workers union at three automakers in Detroit
Spot gold recorded a 0.9% rise, reaching $1,927.79 per ounce by 10:35 a.m. EDT (1435 GMT). Gold's performance throughout the week showed a 0.6% increase
U.S. gold futures also saw a 0.9% gain, reaching $1,949.70
The dollar depreciated by 0.3% against its competitors following the release of U.S. data earlier in the day, making gold more affordable for holders of other currencies
Tai Wong, an independent metals trader based in New York, commented that "Gold and silver are rallying on a wall of worry," highlighting the market's response to current uncertainties
The United Auto Workers union initiated strikes simultaneously at three factories owned by the "Detroit Three," including Stellantis, which owns Chrysler. This marked a significant industrial labor action in the U.S.
The duration of the UAW strike and the potential government shutdown at the end of the month are factors contributing to the gold market's movement
Gold is frequently sought as a safe haven during periods of political and financial instability
Market participants are eagerly awaiting the U.S. Federal Reserve's policy meeting next week, where it is widely expected that interest rates will remain unchanged
Any shift towards a more dovish stance by the Fed could lead to a gold market rally