Global gold prices rose during early trading on Friday, heading for their fourth consecutive weekly increase. The growing concerns about the weak US labor market overshadowed inflation fears ahead of a widely anticipated Federal Reserve interest rate cut next week.
The price of spot gold rose by 0.5 percent to $3,651.92 per ounce, hovering near its record high of $3,673.95 reached last Tuesday. According to Reuters, the price of gold has risen by 1.8 percent so far this week.
Meanwhile, US gold futures for December delivery increased by 0.5 percent to $3,690.30 per ounce. Senior market analyst Kelvin Wong stated, “The market is now pricing in a strong possibility of at least three interest rate cuts before the end of 2025, which is far more than the expectations of two months ago. This is currently supporting gold.”
US consumer prices rose by 0.4 percent in August, the largest monthly increase in seven months. However, data released on Wednesday showed an unexpected decline in US producer prices in August. At the same time, weekly unemployment claims increased last week, confirming a significant slowdown in the labor market.
According to the CME FedWatch Tool, the Federal Reserve is expected to lower its key interest rate by 25 basis pointsnext Wednesday, with a slight possibility of a 50-basis-point cut.
Globally, the price of the yellow metal has increased by about 39% so far this year, driven by a weaker dollar, strong central bank buying, an accommodating monetary policy, and growing global uncertainty. Spot silver prices also rose by 1.2 percent to $42.07 per ounce, while platinum increased by 1.1 percent to $1,393.71, and palladium rose by 1 percent to $1,200.31.
