Gold prices rose in Asian trade on Friday, hovering close to record highs, as signs of a slowing U.S. labour market reinforced expectations of a Federal Reserve rate cut next week, despite slightly stronger inflation data.
Spot gold climbed 0.5% to $3,652.26 per ounce by 01:51 ET (05:51 GMT), just below the all-time high of $3,673.95 reached earlier this week. U.S. Gold Futures for December delivery also gained 0.5% to $3,692.52 per ounce.
Bullion is on track for a 2% weekly rise, marking its fourth consecutive weekly gain. The metal has surged nearly 40% so far in 2025, supported by central bank buying and strong safe-haven demand amid trade uncertainty over President Donald Trump’s tariffs.
Fed Rate Cut Bets Stay Strong
Fresh data on Thursday showed U.S. consumer prices increased 0.4% in August, pushing annual inflation to 2.9%, the highest in seven months. However, labour market data pointed to weakness, with jobless claims climbing to a near four-year high and payroll growth slowing.
Weaker-than-expected producer price data and downward revisions to employment figures reinforced the view of a cooling economy, boosting confidence that the Fed will ease policy. Markets now see an almost certain chance of a 25 basis point cut at the September 16–17 meeting, with some investors betting on a deeper move.
A softer U.S. dollar and lower Treasury yields also supported bullion by reducing the opportunity cost of holding non-yielding assets.
Other Precious Metals and Copper Rise
Silver Futures jumped 1.5% to $42.79 per ounce, the highest level in nearly 14 years, while Platinum Futures rose 1% to $1,406.85 per ounce.
Copper prices also advanced, with London Metal Exchange futures rising 0.4% to $10,106.35 a ton, a six-month high. U.S. Comex Copper Futures added 0.5% to $4.69 a pound, a one-month peak.
Gains came after mining giant Freeport-McMoRan (NYSE: FCX) confirmed its Grasberg mine in Indonesia will remain suspended while rescue operations continue for seven missing workers.
