By Fadi Al Kurdi, Founder & CEO, FFA Kings
Gold steadied around USD 4,170 per ounce on Friday, set to close the week higher as a softer dollar and persistent geopolitical risks underpinned demand for safe-haven assets. The metal’s resilience this week also reflected investor caution ahead of delayed US economic releases following the end of the record government shutdown.
Officials warned that some October data may never be published, as certain agencies were unable to collect figures during the closure. The uncertainty surrounding these missing indicators has heightened market sensitivity to the next round of economic reports, with any signs of weakness likely to strengthen the case for further Federal Reserve rate cuts, benefiting the precious metal.
Still, bullion’s upside remained limited by cautious remarks from several Fed officials, who emphasized inflation risks and the relative resilience of the labor market. San Francisco Fed President Mary Daly said it was premature to decide on December’s policy move, while Minneapolis Fed President Neel Kashkari and Cleveland’s Beth Hammack both signaled reluctance toward additional easing. As a result, traders now see just a 50% probability of a quarter-point rate cut next month, down from 63% a day earlier.
Geopolitical tensions persisted in Eastern Europe and the Middle East, supporting demand for gold.