FX.co ★ Gold Heads for Weekly Gain

Gold hovered around $4,270 per ounce on Friday, maintaining its position near a seven-week peak and poised for a weekly increase. This trend was bolstered by anticipations of further monetary easing by the United States. New indicators of a cooling labor market have heightened expectations that the Federal Reserve might execute two interest rate reductions in 2026. Jobless claims for the week ending December 6 surged more than predicted, reaching their highest point in over two months. This development followed the Fed's third 25 basis point rate cut of the year, accompanied by a less hawkish stance than the markets had projected. Federal Reserve Chair Jerome Powell noted that further rate hikes are unlikely, leading traders to foresee two cuts in 2026, despite the Fed's own forecasts suggesting only a single reduction. Concurrently, the Fed announced plans to purchase approximately $40 billion in short-term Treasury bills to alleviate pressures in the money market—a strategy anticipated to restrain short-term yields and bolster the value of precious metals.