Gold Achieves Record Weekly Gains Supported by Expectations of Interest Rate Cuts and U.S. Shutdown
Gold maintained its stability in trading on Friday, on track to record its seventh consecutive weekly gain, supported by expectations of an additional cut in U.S. interest rates and concerns regarding the impact of the government shutdown in the United States.
By 01:25 GMT, gold was stable in spot transactions at $3851.48 per ounce, after reaching an all-time high of $3896.49 in the previous session, recording gains of 2.5% so far this week.
U.S. gold futures for December delivery also rose by 0.2% to $3875.50.
The U.S. government shutdown is entering its second day, which may delay the release of key economic data, most notably the non-farm payroll report scheduled for release today, Friday.
In related news, Lorie Logan, President of the Federal Reserve Bank of Dallas, indicated that the bank has taken appropriate precautions against any sharp deterioration in the labor market by lowering interest rates last month, but it needs to exercise "caution" before proceeding with monetary easing.
However, markets expect a nearly certain cut of 25 basis points to the key interest rate this month, according to the CME FedWatch tool.
It is worth noting that gold is considered a safe-haven asset during times of political and economic uncertainty, thriving in a low-interest-rate environment, having risen by 47% since the beginning of the year.
In other precious metals markets, spot silver fell by 0.4% to $46.79 per ounce, while platinum dropped by 0.3% to $1563.86, and palladium rose by 0.2% to $1243.41.
