In the United States, investors have increased their interest in gold on expectations of a Federal Reserve (Fed) interest rate cut and fears of weak economic growth amid a government shutdown. As a result, gold prices have increased again in the international market.
According to a CNBC report, Spot gold prices rose 0.8 percent to $4,010 per ounce on Friday (November 7). Analysts say that the upward trend of gold is still continuing. The main reason behind the gold price is the possibility of central banks around the world buying gold and lowering interest rates.
On the other hand, spot silver prices rose 1.2 percent to $48.58 per ounce on Friday. Platinum rose 0.4 percent to $1,547.45 and palladium rose 0.7 percent to $1,384.18. However, the prices of all three metals are on a downward trend for the week.
A report released on Thursday showed that many people lost jobs in the government and retail sectors in October in the United States. In addition, the number of layoffs increased due to spending cuts and the increase in the use of artificial intelligence. A weak job market usually encourages the Fed to cut interest rates.
According to market observers, the probability of another Fed rate cut in December is now 67 percent, which was about 60 percent before. The Fed cut interest rates last week and Chairman Jerome Powell has indicated that this is likely to be the last rate cut this year.
Soni Kumari, a commodity analyst at ANZ Bank, said that the market is now mainly focused on macroeconomic indicators and when the US government will end the impasse. This uncertainty is further increasing the demand for gold as a safe investment.
The United States is experiencing the longest government shutdown in history due to a prolonged congressional impasse, which is forcing investors as well as the data-dependent Fed to rely on private sector indicators.
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