Gold Poised for 7th Weekly Gain Amid Hopes of Interest Rate Cut

Gold is heading for its seventh straight week of gains, staying steady on Friday as investors bet on more US interest rate cuts and worry about a potential government shutdown. The precious metal hit a record high of $3,896.49 per ounce in the previous session and has climbed 2.5% this week alone.

Gold prices barely moved during Friday trading, settling at $3,851.48 per ounce by 01:25 GMT. The metal's impressive run reflects growing confidence that the Federal Reserve will continue cutting interest rates throughout the year. Lower rates make gold more attractive since it doesn't pay interest, and investors often turn to it as a safe haven when economic uncertainty rises.

The possibility of a US government shutdown is adding another layer of support for gold prices. These shutdowns typically create market volatility and push investors toward safer assets. With the Fed already signaling a more dovish stance on monetary policy, gold is benefiting from both lower borrowing costs and flight-to-safety demand.

Other precious metals showed mixed performance on Friday. Silver dropped 0.4% to $46.79 per ounce, while platinum fell 0.3% to $1,563.86. Palladium bucked the trend with a 0.2% gain to $1,243.41.

For traders and investors, gold's seven-week winning streak highlights how monetary policy expectations can drive precious metals markets. The combination of rate cut hopes and political uncertainty in Washington is creating a perfect environment for gold's continued strength. But the metal's recent surge to record highs also raises questions about how much more upside remains if these supportive factors start to fade.