The non-yielding asset, traditionally considered a hedge during geopolitical and economic uncertainty, has gained about 52% this year
[BENGALURU] Gold edged higher on Friday (Oct 10) 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.
Spot gold was up 0.1 per cent to US$3,977.87 per ounce as at 9.20 am. Bullion is up 2.3 per cent so far this week.
US gold futures for December delivery gained 0.5 per cent to US$3,992.40.
New York Fed president John Williams signalled on Thursday that he would be comfortable with cutting rates again, despite some policymakers’ qualms about rising inflation that suggest such a decision will not be easily made.
Traders currently price in a 25-basis-point cut in October and another in December, with a 95 per cent and 82 per cent 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.
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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 US$4,000 per ounce for the first time on Wednesday, reaching a record high of US$4,059.05. The non-yielding asset, traditionally considered a hedge during geopolitical and economic uncertainty, has gained about 52 per cent this year.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.11 per cent to 1,013.44 tonnes on Thursday from 1,014.58 tonnes on Wednesday.
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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 Oct 10, 2025, the company said in a statement on Thursday.
Elsewhere, spot silver climbed 1.2 per cent to US$49.70 per ounce, after hitting an all-time high of US$51.22 on Thursday. Platinum rose 0.4 per cent to US$1,625.30 and palladium gained 1 per cent to US$1,426. REUTERS
