Gold Edges Higher as Softer Dollar and Rate Cut Bets Offer Support

LONDON (November 7) Gold prices approached the upper end of their two-week range on Friday, lifted by a softer US dollar and renewed speculation of another Federal Reserve rate cut, though the metal remains on track for a weekly loss.

Spot gold traded at $4,006 per ounce by 10:20 GMT, having struggled to sustain moves above $4,030. The metal’s upside has been capped by lingering doubts over further Fed easing after Chair Jerome Powell said additional cuts were “not a foregone conclusion.”

Despite Friday’s modest rebound, gold is heading for its third straight weekly decline.

The prolonged US government shutdown, now in its second month, has delayed key economic releases including jobs and inflation data, leaving markets reliant on private indicators. A private employment report on Thursday showed a cooling labour market, fuelling expectations that the Fed could cut rates again before year-end.

Futures markets now imply roughly a 70% chance of a December cut, up from 60% a day earlier. Lower rates typically boost gold by reducing the opportunity cost of holding non-yielding assets.

Meanwhile, global equities have extended sharp losses, with technology stocks leading the slide amid renewed concerns over inflated valuations. The broader rout has supported demand for defensive assets such as gold and US Treasuries.

Even so, bullion remains under pressure from easing US-China tensions and lingering uncertainty over Fed policy, keeping prices confined within a narrow range.

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