Gold on Track for Fifth Straight Weekly Gain as Fed Cut Fuels Rally
Gold prices advanced on Friday, setting up a fifth consecutive weekly gain as markets continue to digest the Federal Reserve’s rate cut and speculate on the central bank’s next moves.
Spot gold rose 0.6% to $3,665.54 per ounce by late morning in New York, while US gold futures added 0.7% to $3,702.30. The metal is on course for a 0.3% weekly gain, extending a record-breaking rally that saw bullion touch an all-time high of $3,706.90 per ounce following Wednesday’s 25-basis-point cut.
While the Fed’s move boosted demand for gold, policymakers also flagged ongoing inflation risks, leaving uncertainty around how quickly rates might be reduced going forward. Minneapolis Fed President Neel Kashkari suggested the softer job market justified this week’s cut and signalled the possibility of more reductions at the next two meetings.
Lower borrowing costs make non-yielding assets like gold more attractive, and the metal has already surged about 40% this year as investors seek both protection and upside in a volatile economic backdrop.
“Gold remains pretty strong here and is just seeing a pause after the Fed,” said Bob Haberkorn, market strategist at RJO Futures. “The bullish trend remains intact with new highs inevitable, and realistically we could see $4,000 before year-end.”
Some investors are also rotating into other precious metals, with platinum and silver offering cheaper entry points. Silver outperformed gold on Friday, climbing 2.2% to $42.76 per ounce and ending the week up 0.6%.
