Gold prices inched up on Friday as a weaker U.S. dollar and growing expectations of another Federal Reserve rate cut boosted investor sentiment. However, the metal remains set for its third consecutive weekly decline, reflecting persistent market uncertainty.
Spot gold gained 0.5% to $3,996.07 per ounce by 04:29 GMT, while U.S. gold futures rose 0.3% to $4,003.85. Despite the uptick, the broader trend remains bearish as investors weigh softening economic signals against the Fed’s cautious stance.
The U.S. Dollar Index slipped 0.5% on Thursday and stayed under pressure, making gold cheaper for foreign buyers. With the U.S. government shutdown entering its second month, official data releases—especially employment and inflation figures—have been delayed, clouding the economic outlook.
Private surveys now serve as key indicators. A recent private-sector jobs report showed weakness in the labor market, amplifying bets that the Fed could lower rates as early as December. Futures markets currently price in a 70% chance of a rate cut, up from 60% a day earlier.
“The absence of official data is clouding the situation, but business surveys suggest the Federal Reserve will likely cut rates further despite its hawkish tone,” noted ING analysts.
Global Sell-Off Drives Haven Demand
Equity markets extended steep declines this week, led by a sell-off in high-growth technology stocks. Investors, concerned over stretched valuations and limited economic clarity, turned toward traditional safe havens like gold and U.S. Treasuries.
However, gold’s rebound has been modest, limited by easing geopolitical tensions, particularly between the U.S. and China, and the lingering impact of the Fed’s restrictive tone from its late-October meeting.
Key factors influencing gold’s direction include:
- Prolonged U.S. government shutdown disrupting data flow
- Declining confidence in corporate earnings
- Market volatility pushing mixed risk sentiment
Broader Metal Markets Gain Slightly
Other metals followed gold’s lead, benefiting from the weaker dollar.
- Silver futures rose 0.7% to $48.26 per ounce
- Platinum futures advanced 0.6% to $1,546.30 per ounce
- Copper futures (LME) edged up 0.3% to $10,707.20 per ton
Fresh data from China showed exports shrinking for the first time in 18 months, reflecting the drag from persistent U.S. tariffs and slowing global demand. Imports also softened, further tightening China’s trade balance and adding uncertainty to industrial demand outlooks.
As the week ends, investors remain cautious—balancing hopes of Fed easing against broader signs of economic strain that continue to test global market resilience.