Gold prices climbed on Friday as the U.S. dollar softened and ongoing uncertainty around a U.S. government shutdown boosted demand for safe-haven assets. Despite these gains, Wall Street indexes were poised for their steepest weekly declines in seven months, driven by concerns over the sustainability of recent AI-driven stock rallies.

Spot and Futures Gold Prices

• Spot gold rose 0.5% to $3,997.47 per ounce as of 11:12 a.m. ET (1612 GMT), though it has slipped 0.1% this week.
• U.S. gold futures for December delivery increased 0.1% to $3,993.60 per ounce.

The weakening of the U.S. dollar index (.DXY) contributed to the rally, as bullion priced in dollars becomes more affordable for investors holding other currencies.

Safe-Haven Demand Amid Economic Uncertainty

Gold is traditionally considered a hedge against market volatility, and its appeal grows in environments of low interest rates and geopolitical or economic uncertainty. Analysts suggest that recent price trends may indicate a technical floor for gold and silver prices, supporting the precious metals market.

Jim Wyckoff, senior analyst at Kitco Metals, noted:

“The recent price action technically suggests we may be putting in a floor underneath gold and silver prices.”

Impact of U.S. Job Market and Interest Rate Expectations

The ongoing government shutdown delayed the release of official non-farm payrolls data, prompting traders to rely on private sector employment figures, which indicated job losses in October.

As a result, market expectations for Federal Reserve interest rate cuts have increased:

• 67% probability of a 25-basis-point rate cut in December, according to CME Group’s FedWatch Tool.

Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, further enhancing its appeal.

Global Factors: China’s Rare Earth Policy

China has begun designing a new rare earth licensing regime that may accelerate shipments, though full restrictions are unlikely to be lifted immediately. Analysts view ongoing trade and supply uncertainties as additional factors supporting gold’s safe-haven demand.

Commerzbank analysts stated:

“Even though the waves in trade policy have calmed down somewhat, the conflicts are by no means resolved. Gold is therefore likely to remain in demand as a safe haven.”

Other Precious Metals

• Silver: up 0.7% to $48.30 per ounce
• Platinum: up 0.3% to $1,545.61 per ounce
• Palladium: up 0.7% to $1,385 per ounce

Despite daily gains, all three metals are set for weekly losses, reflecting broader market volatility.

Investor Takeaways

1. Gold remains a key safe-haven asset amid economic and geopolitical uncertainty.
2. Weakening U.S. dollar and potential Fed rate cuts support precious metal prices.
3. Employment data and shutdown impacts continue to influence market sentiment.
4. Global trade policy and rare earth controls remain critical factors for investor positioning in metals.

The combination of U.S. economic uncertainty, softer dollar trends, and ongoing geopolitical issues reinforces gold’s role as a core portfolio hedge in turbulent markets.