Globally, spot gold climbed 0.6% to $3,654.37 per ounce as of 0211 GMT, moving closer to the record high of $3,673.95 an ounce touched earlier this week.
US gold futures for December delivery were up 0.5% at $3,692.80 an ounce. Bullion has already gained nearly 1.9% an ounce this week and is on track for its fourth consecutive weekly rise.The rally comes as US labour market data showed fresh weakness, with jobless claims surging and employment growth stalling. These signals overshadowed inflation concerns, reinforcing bets on multiple Federal Reserve rate cuts through 2025.
According to CME FedWatch, traders see a high probability of a 25-basis-point cut next week, with a slim chance of a deeper reduction.“Markets are looking for at least three interest rate cuts before 2025 ends, which is much more than earlier projections from two months ago. This is helping gold at the moment,” said Kelvin Wong, Senior Market Analyst at OANDA.
Bullion is also drawing support from safe-haven demand, as geopolitical tensions remain elevated.
Rahul Kalantri, VP Commodities at Mehta Equities, said, “Persistent expectations of looser US monetary policy, rising jobless claims, and geopolitical risks are keeping bullion firm.”
So far this year, gold has risen about 39%, supported by central bank buying, a softer dollar, and investor preference for non-yielding assets in a low-rate environment.
Analysts note that while the metal may face resistance around $3,900 an ounce, the long-term outlook remains bullish, with institutional investors still underexposed to gold.
–With Reuters inputs
