Gold Hovers Near Record Highs as Weak US Jobs Data Reinforces Fed Rate Cut Bets

Gold prices extended gains on Friday, holding close to record highs, as fresh signs of weakness in the U.S. labor market reinforced expectations that the Federal Reserve will move to cut interest rates at its policy meeting next week.

Gold Prices and Market Moves

By 01:51 ET (05:51 GMT), spot gold climbed 0.5% to $3,652.26 per ounce, hovering just below this week’s all-time peak of $3,673.95. U.S. gold futures for December delivery also rose 0.5% to $3,692.52/oz.

Bullion was set to record a 2% weekly gain, marking its fourth consecutive week of advances. Year-to-date, gold has surged nearly 40%, driven by strong central bank demand, safe-haven flows, and expectations of lower U.S. borrowing costs.

Fed Rate Cut Bets in Focus

Thursday’s U.S. consumer price index showed headline inflation accelerating 0.4% month-on-month and 2.9% annually, the fastest in seven months. Yet, the data was overshadowed by signs of labor market weakness, with jobless claims rising to their highest level in nearly four years and payroll growth slowing.

Weaker-than-expected producer price inflation and sharp downward revisions to job figures added to evidence of a cooling labor market, cementing expectations of Fed easing. Markets are now pricing in an almost full probability of a 25-basis-point cut at the September 16-17 meeting, with some traders betting on the possibility of a larger 50-bps move.

A softer U.S. dollar and lower Treasury yields have further underpinned gold, reducing the opportunity cost of holding the non-yielding asset.

Safe-Haven Demand and Central Bank Buying

Beyond Fed expectations, gold continues to find support from safe-haven flows amid persistent trade uncertainties surrounding U.S. tariffs. Central banks, particularly in emerging markets, have remained net buyers of the metal, adding a structural pillar to its long-term strength.

Other Metals: Silver, Platinum, and Copper

• Silver futures surged 1.5% to $42.79/oz, holding near a 14-year high.
• Platinum futures climbed 1% to $1,406.85/oz.
• Copper prices gained after a supply shock, with LME benchmark futures rising 0.4% to $10,106.35/ton, the highest in six months, and COMEX copper up 0.5% to $4.69/pound.

Copper was buoyed by news that one of the world’s largest producers suspended operations at a key Indonesian mine following an accident, sparking concerns of tighter global supply.

Outlook

Traders now turn their attention to next week’s Federal Reserve decision, which is expected to set the tone for both currency and commodity markets through year-end. Any indication of a larger-than-expected cut could push gold to fresh record highs, while firmer U.S. inflation data or Fed caution may temporarily cap gains.