Gold rebounded from earlier losses on Friday and was on track for an eighth consecutive weekly gain, driven by broad political and economic uncertainty and expectations of further U.S. rate cuts, while silver hovered near a record high.
Spot gold, which hit a record high of $4,059.05 U.S. on Wednesday, was up 0.5% to $3,992.97 per ounce - a gain of 2.7% so far this week. U.S. gold futures for December delivery rose 0.8% to $4,005.30.
Non-yielding bullion is traditionally considered a hedge during times of broader uncertainty.
Multiple factors were supporting the rally, including geopolitical risks, robust central bank buying, exchange-traded fund inflows, expectations of U.S. rate cuts, and trade-related uncertainties.
Silver rose 3.7% to $50.95 U.S. per ounce a day after touching a record high of $51.22. It has gained 76% so far this year.
Meanwhile, minutes from the U.S. Federal Reserve’s September meeting revealed policymakers were open to rate cuts to address labour market risks, though inflation concerns persisted.
Investors still anticipate two Fed rate cuts of 25 basis points each in October and December.
Israel’s government ratified a ceasefire with the Palestinian militant group Hamas on Friday.
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