Precious metal prices showed resilience on Friday, with gold holding firm close to its strongest level in seven weeks. This stability stems from market expectations of further US interest rate reductions in the coming year, following the Federal Reserve's recent signals that tempered more aggressive forecasts from traders. Silver continued to trade just shy of the record it established the day before.
Spot gold fell marginally by 0.2% to $4,275.44 per ounce as of 0236 GMT, yet it stayed positioned for a roughly 1.8% increase over the week after reaching its highest point since late October on Thursday. US gold futures followed suit, dipping 0.2% to $4,306.20, supported by a dollar index set for its third weekly decline in a row, which enhances bullion's appeal to international purchasers.
ANZ analyst Soni Kumari highlighted gold's favorable outlook, pointing out that despite the Fed's projections indicating just one rate cut next year, market pricing continues to anticipate two such moves. The central bank implemented its third 25-basis-point reduction of the year on Wednesday via a split vote, and its accompanying statement along with Chair Jerome Powell's remarks came across as dovish, emphasizing that additional easing would require stronger evidence of easing inflation pressures and a less robust job market.
Last week's US jobless claims surged by the largest amount in about four and a half years, though this uptick did not broadly signal a sharp downturn in employment trends. Lower interest rates typically boost demand for yield-free assets like gold, and attention now turns to the upcoming non-farm payrolls data for more insights into the Fed's direction.
Spot silver advanced 0.4% to $63.84 per ounce after peaking at $64.31 on Thursday, on pace for a 9.2% weekly rise. The metal's price has doubled year-to-date, fueled by steady industrial usage, reduced stockpiles, and its status on the US critical minerals roster.
Mumbai-based Kedia Commodities director Ajay Kedia noted that ETF inflows, physical supply constraints, and Fed easing prospects provide tailwinds, with technical charts showing a rounding-bottom pattern that could propel silver toward $75. Platinum gained 0.2% to $1,698.45 per ounce, and palladium climbed 1.9% to $1,512, both marking weekly advances
