Gold Posts 2% Weekly Gain on Dollar Weakness and Rate-Cut Expectations

Gold posted solid gains at settlement, ending the week higher as a weaker US dollar and rising expectations for interest-rate cuts boosted demand for safe-haven assets amid ongoing geopolitical uncertainty.

The performance of gold reflects markets’ response to signals from US monetary policy and investor hedging behavior.

February gold futures edged higher at the close after earlier stronger gains were pared by profit-taking.

Still, gold secured a weekly increase of around 2%, benefiting from a third consecutive weekly decline in the dollar, which lowers costs for holders of other currencies.

Analysts say expectations of a more accommodative Federal Reserve—conditioning further cuts on clearer signs of easing inflation and a cooling labor market—continue to support non-yielding assets like gold.

Recent jobless claims data also reinforced bets on a less restrictive policy stance.

Precious Metals Performance

Elsewhere, silver pulled back after hitting a record high, though it remains on track for strong weekly gains supported by industrial demand and shrinking inventories.

Platinum and palladium also posted modest advances and are heading for weekly gains.

Economic Data in Focus

Investors are now awaiting the US nonfarm payrolls report next week for further clues on the Fed’s policy path, which could influence precious metals markets in the near term.