Gold rose to around $4,340/oz on Friday, approaching the record set earlier in the week and poised to close the week with a sharp gain—the strongest in a nine-week rally. Flights to safety remain strong amid economic uncertainty, US-China trade tensions, and concerns about a US shutdown. Beijing has accused Washington of inciting "panic" over rare earth controls, while US officials have warned of the risks to global supply chains—all of which are fueling interest in the precious metal.

On the policy front, expectations of a Fed rate cut remain fueling the rally. Jerome Powell's recent comments on the weakening labor market have the market almost fully pricing in a 25 bps cut this month, with the possibility of another in December. Because it carries no yield, gold tends to benefit when interest rates fall. Year-to-date, prices have risen by more than 60%, supported by central bank buying, ETF inflows, and strong demand for safe-haven assets.

At the time of writing, the gold price is at $4,357.

Disclaimer:

This article is analytical in nature and not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.

Source: Newsmaker.id