Gold prices pared earlier gains on Friday as hawkish remarks from U.S. Federal Reserve officials dampened expectations for a December interest rate cut. Despite this, bullion remained on track for a weekly gain, supported by lingering economic uncertainty and cautious sentiment across financial markets.

As of 0930 GMT, spot gold stood at $4,169.58 per ounce, after earlier hitting $4,211.06. For the week, gold has risen 4.3%, reflecting investor demand for safe-haven assets amid market volatility. U.S. gold futures for December delivery eased 0.2% to $4,185.90 per ounce.

Factors Influencing Gold Prices

Analyst Ricardo Evangelista from ActivTrades noted:
“Gold prices are receiving support from the cautious mood that has set in across financial markets; however, the upside remains limited by growing doubts about a Federal Reserve rate cut in December, given the lack of fresh economic data.”

The recent U.S. government reopening, following a record 43-day shutdown, did little to clarify economic signals, as the White House indicated that October unemployment data may remain unavailable. This uncertainty has contributed to cautious trading in precious metals and equities alike.

Other market dynamics affecting gold include:

• Position closures in equities to meet margin calls, adding short-term pressure on gold prices.
• Fed commentary highlighting inflation concerns and relative stability in the labor market, reducing the probability of further rate cuts. According to CME Group’s FedWatch tool, the market now assigns a 49% chance of a quarter-point Fed cut in December, down from 64% earlier this week.
• Inflation and growth uncertainty, which historically support demand for non-yielding assets like gold.

Performance of Other Precious Metals

• Silver: Spot silver rose 0.9% to $52.78 per ounce, on track for its best week since September 2024, up 9.2%.
• Platinum: Fell 0.7% to $1,569.85 per ounce.
• Palladium: Declined 0.8% to $1,414.94 per ounce.

Alex Ebkarian, COO at Allegiance Gold, observed that ongoing economic uncertainty and low interest rates continue to favor precious metals, despite short-term fluctuations.

Gold’s resilience this week reflects its role as a safe-haven investment during periods of market volatility, Fed policy uncertainty, and inflation concerns, positioning it as a key asset for investors navigating a complex economic environment.