Gold Climbs to a Seven-Week High on Rate Cut Expectations

Gold extended its gains in global markets at the end of Friday’s session, supported by growing expectations of U.S.

interest rate cuts and sustained demand for safe-haven assets amid economic uncertainty.

Spot gold rose 0.3% to $4,293.43 per ounce, marking its highest level since October 21, while U.S.

gold futures increased 0.4% to settle at $4,328.3 per ounce.

Bart Melek, global head of commodities strategy at TD Securities, said that gold prices advanced despite some pressure from profit-taking and a modest rebound in the U.S.

dollar, noting that the broader trend remains supportive.

The U.S.

Federal Reserve announced this week its third and final interest rate cut of the year, lowering rates by a quarter percentage point, while signaling caution regarding further easing until more economic data becomes available.

Investors are now pricing in two additional rate cuts next year and are closely watching the upcoming U.S.

non-farm payrolls report, which could influence the future direction of monetary policy.

As a non-yielding asset, gold typically performs well in a low interest rate environment, reinforcing its appeal as a safe haven during periods of market volatility.

In other precious metals, platinum climbed 2.6% to $1,740.05 per ounce, its highest level since September 2011, while palladium gained 0.9% to $1,497.21, with both metals heading toward weekly gains.