Gold prices kept rising on Friday as expectations grew for a Federal Reserve rate cut, and tensions in the Middle East pushed more investors to seek safety in the metal. Spot gold gained 0.5%, while futures followed with similar increases, despite a slight drop earlier in the week. Technical indicators show the market’s strength could continue, helped by a weaker dollar and concerns over inflation. Silver, platinum, and palladium also edged higher, though some metals are still set for weekly losses.
Gold extends gains as fed rate cut expectations rise
Gold prices continued their upward trend on Friday, supported by growing expectations of a Federal Reserve rate cut next month.
Spot gold increased by 0.5%, closing at USD 2,644.33 per ounce, while US gold futures rose by 0.7%, reaching USD 2,658.90.
Despite a brief dip earlier in the week, the market remains strong after hitting a high of USD 2,685.42 last month.
Technical indicators suggest further upside
The chart shows steady gains, with gold opening at USD 2,629.81 and reaching an intraday high of USD 2,638.04.
Gold price chart showing steady gains with bullish momentum, supported by moving averages and positive MACD signals, as seen on the VT Markets app.
Technical indicators, such as the 5, 10, and 30-day moving averages, signal continued bullish momentum, pointing to the potential for further upward movement.
Gold’s strength has been underpinned by a drop in the dollar index from its two-month high, making the metal more appealing to investors holding non-US currencies.
On Thursday, data revealed that US consumer prices rose slightly more than expected in September, while jobless claims surged to 258,000, surpassing the forecast of 230,000.
Attention now turns to the US Producer Price Index (PPI) report, set to be released today, which could further impact gold prices.
The chart suggests prices are nearing a resistance level, with bullish MACD indicators showing that buyers remain dominant.
Geopolitical tensions fuel safe-haven demand
Meanwhile, rising tensions in the Middle East have further boosted demand for gold as a safe-haven asset during periods of geopolitical instability.
Israeli strikes on central Beirut have heightened concerns, adding to gold’s appeal.
Silver and platinum show gains but face weekly losses
Silver rose by 0.2% to USD 31.25 per ounce, and platinum gained 0.9%, closing at USD 975.65.
Despite these gains, both metals are set for weekly losses. Palladium, on the other hand, climbed by 1.2% to USD 1,082.07 per ounce, posting a 1% weekly gain.
Gold’s bullish momentum is expected to persist, with short-term gains likely if PPI data suggests a softer inflation outlook.
Geopolitical uncertainties and expectations of a Fed rate cut are likely to keep gold prices supported in the coming days.
