FX.co ★ Gold on Track for Eight-Week Rally

Gold prices climbed to roughly $3,980 per ounce on Friday, positioning for an eighth straight weekly increase after reaching a new record high earlier in the week. The gains were underpinned by ongoing economic uncertainties and anticipations of potential rate cuts by the United States. New York Federal Reserve President John Williams expressed openness to an additional rate reduction, although the threat of escalating inflation may complicate such a move. This sentiment mirrored insights from the recent Federal Open Market Committee (FOMC) minutes, which indicated policymakers were aware of increasing risks to the labor market but remained wary of sustained inflationary pressures. Concurrently, the US government shutdown, now entering its second week, has postponed the release of crucial economic data and continued to create market uncertainty. On Thursday, gold pulled back from its new high of $4,000 as the US dollar gained strength and investors opted to take profits following the announcement of the initial phase of a ceasefire agreement between Israel and Hamas.