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Market Overview
Gold prices traded modestly higher in Asian trading on Friday, remaining close to record peaks and on track for a fifth straight weekly gain. Spot gold rose 0.2% to $3,650.14 per ounce, while U.S. gold futures for December delivery added 0.2% to $3,683.70. The metal had touched a historic high of $3,707.40 earlier in the week before retreating as the U.S. dollar rebounded.
Fed Cut Provides Underpinning, Dollar Limits Upside
The Federal Reserve lowered its benchmark rate to 4.00%–4.25% on Wednesday, the first reduction since December, cementing expectations that easier monetary policy would support gold demand. Updated projections showed two additional cuts likely this year, though only one in 2026, signaling a more cautious long-term stance.
Chair Jerome Powell described the move as a “risk-management” decision, citing rising unemployment risks and a cooling labor market. While this boosted gold earlier in the week, prices eased in the last two sessions as the U.S. dollar rebounded from three-year lows, trimming some of bullion’s gains. The U.S. Dollar Index rose 0.1% on Friday after stronger rebounds earlier in the week.
Geopolitical and Monetary Backdrop
Beyond the Fed, investor attention also focused on the Bank of Japan, which held rates steady at 0.5% while navigating political uncertainty and U.S. tariff headwinds. Global uncertainty, combined with questions over central bank independence in the U.S., has kept safe-haven demand for gold elevated this year.
Despite recent pullbacks, gold has still surged nearly 39% year-to-date, driven by Fed easing expectations, geopolitical risks, and strong central bank purchases.
Metals Complex Performance
- Silver Futures: Gained 0.7% to $42.415/oz, extending resilience in industrial precious metals.
- Platinum Futures: Largely steady at $1,396.60/oz, reflecting cautious trading.
- Copper: Prices advanced with London futures up 0.3% to $9,983.50/ton and U.S. futu
