Gold edges up on weaker dollar but Fed caution caps gains

Gold prices inched higher on Friday, rounding off a strong week as a weaker dollar helped support the metal. Even so, comments from US Federal Reserve officials kept investors from making bigger bets, with many now questioning whether another rate cut is likely before the year ends.

Spot gold picked up modest ground in early trade, rising to $4,188.93 per ounce. The metal has climbed nearly 5 percent this week, driven largely by the softer dollar, which often makes gold a more appealing choice for buyers using other currencies. US gold futures for December delivery hovered around $4,191.90.

Analysts say the metal’s rally this week has been shaped by shifting expectations around US monetary policy. Brian Lan of GoldSilver Central said many investors bought into gold as the dollar eased and speculation grew over a possible December rate cut. He said these hopes cooled after recent signals from the Fed suggested policymakers were not ready to move quickly.

The US government’s reopening after a 43 day shutdown has also added uncertainty, with the break in data releases making it harder for markets to get a clear read on inflation and jobs. Although the Fed cut rates by a quarter point last month, Chair Jerome Powell has already warned that more reductions will need stronger evidence from the economy.

Fresh projections show traders now see only a 51 percent chance of a rate cut next month. This is a sharp drop from earlier expectations and weighed on gold’s upward push.

Gold usually benefits in times of economic stress or when interest rates fall, since the metal does not offer a yield of its own. Any sign that the Fed may slow its easing path tends to limit the metal’s appeal.

The precious metals market saw broader gains. Spot silver reached $52.95 per ounce and is heading for its strongest weekly performance in more than a year. Platinum rose to $1,596.24 and palladium climbed to $1,443.55, both edging up as traders looked for stability ahead of more economic data releases.

Gold price in Pakistan

Gold prices in Pakistan surged on Thursday, with 24-karat gold reaching Rs443,062 per tola, marking a jump of Rs8,300 from the previous day. The 10-gram rate for 24-karat gold also climbed sharply by Rs7,116, settling at Rs379,854, the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA) reported.

Demand for 22-karat gold remained strong, with prices quoted at Rs348,212 per 10-gram, reflecting steady local interest. Silver also saw notable gains, with 24-karat silver rising to Rs5,662 per tola, up Rs228, and Rs4,854 per 10-gram, an increase of Rs196.