The gold price is heading for its best weekly performance in 10 months as the price trades above the psychological $1,200 barrier. Yesterday a slight rise in the oil price boosted gold’s appeal as a hedge against future inflation. Today gold traders will be looking towards the release of latest U.S. jobs data report for further information on the health of the world’s largest economy.

Better than expected jobs growth will be negative for gold as many believe this will prompt the Federal Reserve to raise interest rates sooner. This week gold has risen 3.3%, it biggest jump since February. In recent months the strengthening U.S. dollar has pushed the gold price down to near 4 and a half year. The dramatic decline in the oil price has also weighed heavy on the gold market.

Yesterday the ECB failed to announce new stimulus measures, although recent data suggests the 18 member Eurozone risks falling into a deep recession. Many now expect the announcement to be made early in 2015 as the economy continues to contract. Further stimulus programs should be positive for both the gold and silver price.

Gold is currently trading at £768.33 per ounce, silver £10.50 per ounce, platinum £790.04 per ounce and palladium £512.04 per ounce.