Gold prices advanced in Asian trading on Friday, moving within reach of record territory as expectations of a Federal Reserve rate cut strengthened. Spot gold gained 0.5% to $3,652.26 per ounce at 01:51 ET (05:51 GMT), while U.S. gold futures expiring in December climbed 0.5% to $3,692.52.
The metal has rallied nearly 40% year-to-date, supported by weaker U.S. economic indicators and consistent safe-haven demand. For the week, bullion is on track to rise about 2%, securing a fourth consecutive weekly gain. The current momentum leaves gold only a fraction below the all-time high of $3,673.95 set earlier this week.
Fed Signals Bolster Market Confidence
Market sentiment has shifted decisively toward policy easing after recent U.S. data pointed to a cooling labor market. Weekly jobless claims reached their highest level in nearly four years, while payroll growth slowed, amplifying investor bets on Fed action at the upcoming September 16–17 meeting.
Although consumer prices rose 0.4% in August, lifting annual inflation to 2.9%—the highest in seven months—other metrics reflected growing slack in the economy. Producer prices came in softer than expected, while previous job figures saw downward revisions. Collectively, the data has reinforced confidence that the Fed will cut rates, with some traders now forecasting a more aggressive easing cycle.
Additional support for gold has come from a weaker dollar and declining U.S. Treasury yields, both of which reduce the opportunity cost of holding non-yielding bullion. Central bank purchases and heightened trade policy uncertainty have also kept demand resilient.
Precious and Base Metals Advance
The broader metals market also saw gains. Silver futures surged 1.5% to $42.79 per ounce, their strongest level in nearly 14 years. Platinum futures climbed 1% to $1,406.85.
Base metals benefited from supply concerns. Copper futures on the London Metal Exchange rose 0.4% to $10,106.35 per ton, the highest in six months. U.S. Comex copper futures gained 0.5% to $4.69 per pound. The rally was fueled by news that Freeport-McMoRan’s Grasberg mine in Indonesia remains shut as rescue operations continue for seven missing workers.
Key Takeaways:
- Spot gold: $3,652.26/oz (+0.5%)
- U.S. gold futures: $3,692.52/oz (+0.5%)
- Silver: $42.79/oz (+1.5%)
- Platinum: $1,406.85/oz (+1%)
- Copper (LME): $10,106.35/ton (+0.4%)