FX.co ★ Gold on Track for 7th Weekly Gain

On Friday, gold hovered around $3,860 per ounce, poised for a seventh consecutive weekly increase, bolstered by a surge in safe-haven demand and dovish expectations from the Federal Reserve. Investor interest in safe assets has intensified due to the ongoing partial shutdown of the U.S. government, which jeopardizes thousands of federal jobs and risks delaying the release of critical economic data, including the all-important non-farm payrolls report. In the absence of the government's weekly initial jobless claims and NFP report, attention shifted to data from a private outplacement firm. ADP payrolls showed a decline for the second consecutive month—a first since the second quarter of 2020—while JOLTS reflected fewer job quits, and the Challenger report pointed to a slowdown in hiring. These indicators have fueled anticipation of two more Federal Reserve rate cuts, even amidst ongoing inflation concerns. Nonetheless, gold experienced slight pressure on Thursday following remarks from Dallas Fed President Lorie Logan, who advised caution regarding further interest rate reductions.