Gold Extends Rally as Precious Metals Outlook Strengthens
Gold continued to climb this week as the precious metals outlook strengthened. Prices remained close to a seven week high, supported by expectations of more rate cuts next year. Investors reacted to the Federal Reserve’s softer tone, which eased earlier hawkish market fears.
Spot gold dipped slightly by 0.2%. However, it still headed for a solid weekly gain of 1.8%. The dollar also weakened for a third straight week, making gold more affordable for global buyers.
Analysts noted growing optimism in the market. For example, ANZ’s Soni Kumari pointed out that investors still expect two rate cuts next year. This view remains firm even though the Fed’s latest projections suggested only one. Therefore, many traders see more room for gold to advance.
Market Signals
The Fed’s recent decision delivered another 25 basis point cut. Officials shared that future moves depend on cooling inflation and a softer labor market. Jerome Powell’s comments appeared less aggressive, which encouraged more confidence among investors.
New data also showed an increase in jobless claims. The rise was the largest in more than four years. However, experts said it does not yet signal major weakness in the job market. Investors now look toward next week’s U.S. non-farm payrolls report for more clues.
Gold usually performs well during periods of lower interest rates. As a result, traders expect stronger demand if the Fed continues to ease policy. Many see the current trend as a sign of possible long-term support.
Silver and Other Metals
Silver also gained momentum. The metal rose 0.4% after touching a record level of $64.31 on Thursday. It is on track for a powerful weekly gain of more than 9%. Prices have more than doubled this year due to strong industrial demand and shrinking inventories.
Experts say technical charts point to further upside. Ajay Kedia, from Kedia Commodities, highlighted a breakout pattern that could push silver toward $75. In addition, silver recently joined the U.S. critical minerals list, adding more interest from investors.
Other metals also advanced. Platinum edged 0.2% higher, while palladium jumped nearly 2%. Both metals are heading for weekly gains as global demand improves.
