Gold nears weekly gain on US easing outlook
Gold steadied on Friday after three consecutive sessions of gains, supported by expectations of further monetary easing in the United States following this week’s interest-rate cut.
Silver also hovered near a record high, News.Az reports, citing Bloomberg.
Bullion traded around $4,285 an ounce and is on track for a weekly gain of more than 2%. After lowering borrowing costs on Wednesday, Federal Reserve policymakers signaled the possibility of additional rate cuts next year. Swaps traders anticipate two reductions in 2026, despite the Fed indicating only one.
Lower interest rates generally support precious metals, which do not yield interest. Adding to gold’s momentum, the Fed will begin purchasing $40 billion in Treasury bills each month starting Friday as part of efforts to rebuild financial-system reserves.
Gold has climbed more than 60% this year, while silver has more than doubled, putting both on pace for their strongest annual performance since 1979. The powerful rallies have been driven by robust central-bank buying and a shift by investors away from sovereign bonds and major currencies.
Gold-backed exchange-traded fund holdings have grown in every month this year except May, according to the World Gold Council. Silver, meanwhile, has benefited in recent weeks from strong demand and tightening supply conditions across major trading hubs. The metal reached a record $64.3120 an ounce on Thursday.
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