Gold prices edged slightly lower during Asian trading on Friday after strong gains earlier in the week, as dovish signals from the Federal Reserve continued to support the broader metals market. Silver, meanwhile, held close to record highs, underscoring strong investor demand.
Despite the modest pullback, gold and other precious metals were set to post weekly gains. Expectations of lower U.S. interest rates next year have increased the appeal of non-yielding assets, while a weaker dollar has provided additional support for commodities priced in the greenback.
Spot gold slipped 0.1% to $4,274.23 an ounce, while March gold futures declined 0.2% to $4,305.90 an ounce by 00:29 ET (05:29 GMT).
Gold and metals set for weekly gains on dovish Fed outlook
Spot gold was still up around 1.8% for the week, with most of the gains coming after the Federal Reserve delivered a widely expected interest rate cut and signaled a less hawkish stance on future policy. While Fed Chair Jerome Powell acknowledged a higher threshold for additional rate cuts, his overall tone was more accommodative than markets had anticipated.
Powell also announced that the Fed would begin purchasing shorter-dated U.S. Treasuries at a pace of $40 billion per month, effective immediately. This move is expected to boost market liquidity and loosen financial conditions, supporting demand for speculative and non-yielding assets such as precious metals.
Other metals also benefited from the improved liquidity outlook. Spot platinum edged up to $1,702.60 an ounce and was on track for a weekly gain of nearly 4%. Among industrial metals, benchmark copper futures on the London Metal Exchange rose slightly to $11,878.30 per tonne, extending weekly gains to about 2%.
Additional support for copper came from optimism around further stimulus measures in China, the world’s largest copper consumer, putting prices on course for a third consecutive weekly advance.
Silver stays near record high after strong rally
Silver significantly outperformed this week, driven by expectations of a future supply shortage, steady safe-haven demand, and a supportive U.S. interest rate outlook. Spot silver climbed 0.4% to $63.7785 an ounce, remaining close to Thursday’s record high of $64.3095.
The metal was on track for a weekly gain of more than 9%, marking its third consecutive week of advances. Silver has more than doubled in value this year, supported by its dual role as both a safe-haven asset and an industrial metal at a relatively lower price point than gold.
More recently, forecasts of a supply deficit in 2026, along with silver’s designation as a critical metal by the U.S. government, have added to the strong upward momentum in prices.
