Gold Holds Near Seven-Week High as Rate-Cut Expectations Boost Demand

Gold prices hovered close to a seven-week high on Friday, supported by growing expectations of additional U.S. interest rate cuts next year. Spot gold rose 0.1% to $4,286.35 an ounce by 0708 GMT and was set for a 2.1% weekly gain after touching its highest level since October 21. U.S. gold futures also edged up 0.1% to $4,317.50, while a weakening dollar—on track for its third straight weekly drop—made bullion more attractive to overseas buyers.

The Federal Reserve’s third rate cut this year, delivered through a divided 25-basis-point decision, signaled a less hawkish tone, lifting investor sentiment toward non-yielding assets such as gold. ANZ analyst Soni Kumari noted that markets continue to price in two rate cuts next year despite the Fed’s projections indicating just one. Investors now await next week’s U.S. non-farm payrolls report for clearer signals, even as weekly jobless claims surged by the most in nearly 4.5 years, though not enough to indicate a major weakening in labour conditions.

Silver extended its rally, rising 0.2% to $63.67 per ounce after hitting a record $64.31 on Thursday, and is on track for a 9.3% weekly jump. Its surge this year—more than doubling in price—has been fuelled by strong industrial demand, tight inventories, and its recent inclusion in the U.S. critical minerals list. Analysts, including Ajay Kedia of Kedia Commodities, see technical momentum pointing toward the $75 mark. Among other precious metals, platinum slipped 0.1% to $1,694.30 while palladium gained 1.7% to $1,508.60, with both set for weekly gains.

Pic Courtesy: google/ images are subject to copyright