Emirates Voice – Gold prices rose on Friday, supported by growing expectations of further US interest rate cuts this year. Additionally, economic concerns related to the US government shutdown persist.
By 1:45 PM Moscow time, December gold futures (Comex) had risen 0.53% to $4,012 per ounce. Spot gold also climbed 0.75% to $4,007.22 per ounce.
Weak labor market fuels Saudi expectations
Independent analyst Ross Norman linked the continued rise to key factors, noting that “the upward trend is still in place.”
Catalysts for the rise: Norman confirmed that the factors driving the strength of gold prices remain in place. These include central bank gold purchases and expectations of US interest rate cuts.
Economic data: This rise followed data released on Thursday. This data showed that the US economy lost jobs in October, particularly in the government and retail sectors.
It is worth noting that a weak labor market typically increases the likelihood that the US Federal Reserve will cut interest rates to stimulate the economy. This makes gold, which does not generate interest, more attractive to investors compared to other assets.
Reports also indicated that announced layoffs have increased, influenced by cost-cutting measures and companies’ adoption of artificial intelligence technologies.
