FX.co ★ Gold Edges Higher

Gold prices experienced a modest increase to approximately $3,990 per ounce on Friday, buoyed by a weakening dollar and a resurgence in safe-haven demand due to uncertainties surrounding the potential US government shutdown. Investor sentiment was further shaped by mixed economic data from the United States. Notably, consumer confidence plummeted to its second-lowest level on record, coupled with October's layoffs reaching a two-decade peak and private-sector data indicating job losses. These factors have heightened expectations that the Federal Reserve might proceed with another interest rate cut in December. Currently, markets are anticipating a more than 70% likelihood of such a rate cut occurring in December, a rise from 60% the previous day. However, this expectation was moderated by assertive statements from the Federal Reserve and stronger-than-anticipated ADP employment and ISM services data released earlier in the week. Despite these developments, gold was set for a slight weekly decline.