Layoffs Soar, Gold Rebounds
Gold prices edged up to near $3,990/oz on Friday after a weak US jobs report fueled bets for a Fed rate cut in December. The surge in Challenger job cuts—the largest for October in more than 20 years—drove the 10-year Treasury yield to its sharpest drop in about a month and boosted gold's appeal as a non-yielding asset.
Despite strengthening easing expectations, signals from Fed officials remained mixed. Chicago Fed President Austan Goolsbee said the lack of official inflation data due to the government shutdown made it "uncomfortable" to continue cutting rates. These conflicting tones kept gold's rally subdued, though the bias remained positive.
On a weekly basis, gold is headed for a small decline—its third straight and longest this year. However, since the start of the year, its price has still surged more than 50% and is on track for its best annual performance since 1979. Support comes from expectations of interest rate cuts, inflows into gold-backed ETFs, and central bank buying. With a lack of official data due to the government shutdown, the market is placing more weight on private releases while awaiting the final FOMC meeting of 2025 next month.
In other precious metals, silver strengthened for a third day after the US added it to the list of critical minerals under investigation under Section 232 of the Trump administration—a move that could potentially lead to tariffs or restrictions. Any import duties on silver could disrupt the market as the US relies heavily on imports to meet domestic needs. (az)
Source: Newsmaker.id
