Gold prices edged higher in Asian trading on Friday, supported by a weaker U.S. dollar and renewed expectations of another Federal Reserve rate cut. However, the precious metal remained on track for its third consecutive weekly loss.
Spot gold rose 0.5% to $3,996.07 per ounce by 23:29 ET (04:29 GMT), while U.S. gold futures gained 0.3% to $4,003.85. Despite Friday’s rebound, gold prices were still set to end the week slightly lower.
Softer Dollar and Fed Cut Bets Boost Gold
The U.S. Dollar Index fell 0.5% on Thursday and stayed subdued on Friday, making gold more affordable for buyers holding other currencies.
The ongoing U.S. government shutdown, now in its second month, has delayed key economic data releases such as employment and inflation figures. This data gap has increased market uncertainty, pushing investors to rely on private-sector reports for direction.
A recent private jobs report showed further weakness in the labor market, fueling expectations that the Federal Reserve may cut interest rates sooner than previously expected.
“The absence of official data is clouding the situation, but business surveys suggest the Fed will likely ease policy further despite recent hawkish statements,” analysts at ING said.
According to CME FedWatch, futures markets now price in roughly a 70% chance of a rate cut in December, up from 60% the previous day. Lower interest rates typically benefit gold, which does not yield interest.
Stock Market Losses Boost Gold’s Safe-Haven Demand
Global stock markets extended their declines this week, led by a sharp sell-off in technology shares as investors reassessed high valuations. The downturn prompted a shift toward safe-haven assets such as gold and U.S. Treasuries.
However, bullion prices still struggled to recover fully after losses sparked by the Fed’s hawkish tone at its late-October meeting. Gains were also capped by easing geopolitical tensions between the United States and China, which reduced the need for defensive investments.
Metal Markets Edge Higher as China’s Exports Fall
Other precious and industrial metals saw modest gains on Friday as the weaker dollar provided additional support.
Silver futures climbed 0.7% to $48.26 per ounce, while platinum advanced 0.6% to $1,546.30.
On the industrial side, benchmark copper on the London Metal Exchange rose 0.3% to $10,707.20 per ton, while U.S. copper futures were stable at $4.98 per pound.
New data showed that China’s exports unexpectedly declined in October for the first time in 18 months, reflecting the impact of high U.S. tariffs and cooling global demand. Imports also weakened, narrowing the country’s trade surplus.
