Gold prices remained around $4,270 per ounce on Friday, near a seven-week high and potentially posting another weekly gain. This positive sentiment stems from expectations that the Fed will continue to loosen monetary policy. The US labor market is starting to show signs of weakening, as evidenced by higher-than-expected jobless claims for the week of December 6, which reached their highest level in more than two months. This has made market participants increasingly confident that the Fed could cut interest rates twice in 2026, although official projections only suggest one.

At the same time, the Fed recently cut interest rates by 25 basis points for the third time this year and signaled that additional rate hikes are almost certainly unlikely. The US central bank will also purchase approximately $40 billion in short-term Treasury securities to ease pressures in the money market. This move is expected to keep short-term yields from rising too high, further strengthening the appeal of gold and other precious metals as a hedge.
The price of gold at the time of this analysis was released was $4,269.

Disclaimer:
This article is analytical in nature and does not constitute definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id