Gold prices remained near a seven-week high on Friday, supported by expectations of further U.S. Federal Reserve interest rate cuts next year. Meanwhile, silver hovered just below Thursday’s all-time peak, as investors continue to evaluate macroeconomic signals and the potential trajectory of U.S. monetary policy.

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Gold Maintains Strength Amid Fed Rate Expectations

Spot gold rose slightly by 0.1% to $4,286.35 per ounce as of 07:08 GMT on Friday, tracking for a 2.1% weekly gain after hitting the highest level since October 21 on Thursday. U.S. gold futures gained 0.1%, reaching $4,317.50 per ounce.

The greenback’s decline, marking its third consecutive weekly drop, has made bullion more attractive for overseas buyers, further supporting gold prices.

Soni Kumari, an analyst at ANZ, noted:

“Gold is looking quite positive, and investors are taking cues from the market pricing in two rate cuts next year, even though the Fed’s dot plot suggests just one.”

The U.S. Federal Reserve delivered its third 25-basis-point rate cut of 2025 in a split decision on Wednesday. Investors interpreted Chair Jerome Powell’s comments and the Fed’s statement as less hawkish than expected, suggesting that any further easing will depend on softer labor market conditions and clear signs of cooling inflation.

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U.S. Jobless Claims and Non-Farm Payrolls Outlook

Last week, U.S. weekly jobless claims rose by the most in nearly four and a half years, although analysts said this did not indicate a material weakening of the labor market. Investors now await next week’s U.S. non-farm payroll report, which could offer more guidance on the Fed’s policy path.

Gold, as a non-yielding asset, tends to benefit in low-interest-rate environments, making it a preferred choice for investors seeking a hedge amid economic uncertainty.

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Silver Nears Record High

Spot silver added 0.2% to $63.67 per ounce after touching a record $64.31 on Thursday, putting it on track for a 9.3% weekly gain. The white metal has more than doubled in value this year, supported by strong industrial demand, shrinking inventories, and its inclusion on the U.S. critical minerals list.

Ajay Kedia, director at Mumbai-based Kedia Commodities, highlighted technical indicators pointing toward further gains:

“Exchange-traded fund inflows, physical shortages, and the Fed rate-cut outlook are supportive, and the rounding-bottom breakout suggests silver could reach $75 per ounce.”

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Other Precious Metals

• Platinum slipped 0.1% to $1,694.30 per ounce, yet remained on track for a weekly gain.
• Palladium climbed 1.7% to $1,508.60 per ounce, also showing positive weekly performance.

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Outlook for Precious Metals Investors

With the Federal Reserve signaling potential interest rate cuts, and global economic uncertainty continuing, precious metals such as gold and silver are likely to remain in focus. Investors are closely monitoring macroeconomic indicators, including U.S. employment data, inflation trends, and central bank policy, which are shaping bullish sentiment in the bullion market.