FX.co ★ Gold Poised for Strong Weekly Gain

Gold prices remained steady at around $4,330 per ounce on Friday, lingering near record highs and poised for a significant weekly gain, marking the strongest performance in an ongoing nine-week rally. This rise reflects investors' flight to safety amidst escalating economic uncertainties. Earlier in the week, gold repeatedly reached new highs, propelled by revived US–China trade tensions and apprehensions surrounding the ongoing US government shutdown. Recent trade developments included China accusing the US of inciting "panic" over its control of rare earth minerals, although China expressed a willingness to engage in trade discussions. The attraction of the non-yielding metal was further amplified by growing expectations of US interest rate cuts, following remarks from Fed Chair Jerome Powell suggesting signs of a weakening labor market. This has led investors to almost fully anticipate a 25 basis point rate cut at the upcoming Fed meeting, with another one expected in December. Gold has surged by over 60% this year, driven by central bank acquisitions, inflows into exchange-traded funds (ETFs), and robust demand for safe assets.