Investing.com– Gold prices nudged higher in Asian trading on Friday, supported by a softer U.S. dollar and growing bets on another Federal Reserve rate cut, even as the metal remained set for a weekly loss.
Spot gold was last up 0.5% at $3,996.07 an ounce by 23:29 ET (04:29 GMT), while U.S. Gold Futures edged 0.3% higher to $4,003.85.
Still, the yellow metal was on track to tick lower for the week, heading for its third consecutive weekly loss.
Softer dollar, Fed easing bets support gold prices
The US Dollar Index fell 0.5% on Thursday and stayed subdued on Friday, making bullion cheaper for holders of other currencies.
The prolonged U.S. government shutdown — which has now entered its second month — has delayed the release of key economic reports, including employment and inflation data, leaving markets with limited official guidance.
The data vacuum has heightened uncertainty and prompted investors to rely on private-sector surveys for economic signals.
A private jobs report on Thursday showed signs of weakness in the labor market, adding to expectations that the Fed could ease policy rates again sooner than previously thought.
“The absence of official data is clouding the situation, but business surveys suggest the Federal Reserve will likely cut rates further despite recent hawkish messaging,” ING analysts said in a note.
Futures pricing now indicates about a 70% chance of a rate cut in December, up from roughly 60% a day ago. Lower interest rates tend to support gold, which yields no interest.
Stock market sell-off adds to gold’s haven appeal
Global equity markets, meanwhile, extended sharp losses this week, with technology shares leading the slide amid renewed concerns over lofty valuations.
The broader rout pushed investors toward safer assets such as gold and U.S. Treasuries.
Still, bullion remains weaker for the week, struggling to recover from losses sparked by the Fed’s hawkish tone at its late-October meeting.
Gold’s gains have also been capped by easing geopolitical tensions, particularly between the United States and China.
Metal markets edge higher; Chinese exports fall unexpectedly in Oct
Other precious and industrial metals traded modestly higher on Friday as a weak dollar lent support.
Silver Futures rose 0.7% to $48.26 per ounce, while Platinum Futures advanced 0.6% to $1,546.30/oz.
Benchmark Copper Futures on the London Metal Exchange gained 0.3% to $10,707.20 a ton, while U.S. Copper Futures were muted at $4.98 a pound.
Data on Friday showed that Chinese exports unexpectedly shrank in October for the first time in 18 months, amid continued pressure from high U.S. trade tariffs and cooling overseas demand.
Imports also weakened, leading to a decline in the country’s trade balance.
