Gold prices advanced on Friday as the U.S. dollar weakened and concerns over the ongoing government shutdown boosted demand for safe-haven assets. Spot gold rose 0.7% to $4,005.21 per ounce at 3:15 p.m. ET, while U.S. gold futures for December delivery increased 0.5% to $4,009.80 per ounce.
Wall Street’s tech-heavy indexes were headed for their steepest weekly drop in seven months amid worries about the durability of the artificial intelligence-driven rally. The softer dollar made dollar-denominated bullion more affordable for holders of other currencies.
Jim Wyckoff, senior analyst at Kitco Metals, said recent trends suggest gold and silver prices may be forming a technical floor. Gold, often seen as a hedge in uncertain times, tends to perform well when interest rates are low. With the shutdown delaying the U.S. jobs report, traders relied on private data showing October job losses, increasing expectations of a 25-basis-point Fed rate cut in December.
Meanwhile, China is reportedly planning a new rare earth licensing system, and India’s gold demand remained muted due to price volatility. Silver gained 0.9%, platinum 0.1%, and palladium 1.5%, though all three ended the week lower.
