Gold poised for eighth weekly rise on firm safe-haven demand

Gold edged higher on Friday and headed for its eighth straight weekly gain, as lingering geopolitical and economic uncertainty alongside expectations for interest rate cuts from the US Federal Reserve boosted demand for bullion.

FUNDAMENTALS

* Spot gold was up 0.1% to USD 3,977.87 per ounce as of 0120 GMT. Bullion is up 2.3% so far this week.

* US gold futures for December delivery gained 0.5% to USD 3,992.40.

* New York Fed President John Williams signaled on Thursday he would be comfortable with cutting rates again, despite some policymakers’ qualms about rising inflation that suggest such a decision won’t be easily made.

* Traders currently price in a 25-basis-point cut in October and another in December, with a 95% and 82% chance, respectively, according to CME FedWatch Tool.

* Markets this week have grappled with political turmoil in Japan and France alongside an ongoing US government shutdown, all of which have done little to stoke confidence in investors, who have sought safety in gold.

* The number of Americans filing new applications for unemployment benefits increased again last week, economists estimated on Thursday, hinting at some early layoffs of contractors related to the US government shutdown.

* Bullion surged past USD 4,000 per ounce for the first time on Wednesday, reaching a record high of USD 4,059.05. The non-yielding asset, traditionally considered a hedge during geopolitical and economic uncertainty, has gained about 52% this year.

* SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.11% to 1,013.44 metric tons on Thursday from 1,014.58 tons on Wednesday.

* Kotak Mahindra Asset Management Company (KMAMC) has temporarily suspended fresh lump-sum and switch-in investments into the Kotak Silver ETF Fund of Fund, effective October 10, 2025, the company said in a statement on Thursday.

* Elsewhere, spot silver climbed 1.2% to USD 49.70 per ounce, after hitting an all-time high of USD 51.22 on Thursday. Platinum rose 0.4% to USD 1,625.30 and palladium gained 1% to USD 1,426.

(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)