Gold on Track for Best Weekly Gains in Three Months

Gold prices saw an increase yesterday and are on track to post the best weekly gains in three months, supported by growing expectations of a U.S. interest rate cut this month. By 0934 GMT, spot gold rose 0.1% to reach $3548.49 per ounce.

The precious metal has gained 3% so far this week. Meanwhile, U.S. gold futures for December delivery held steady at $3605.10.

Data released on Thursday showed that the number of Americans filing new claims for unemployment benefits rose more than expected last week, aligning with weak labor market conditions.

Additionally, a report from the ADP Research Institute revealed that private sector jobs in the U.S. increased less than anticipated in August.

These figures influenced market expectations about the potential moves by the Federal Reserve regarding interest rates. Investors and analysts are closely watching economic indicators for clues on policy changes.

The possibility of interest rate cuts is often seen as supportive for gold since lower rates typically make non-yielding bullion more attractive by reducing the opportunity cost of holding the asset.

As global economic uncertainties persist, market participants continue to monitor developments closely to gauge the future direction of monetary policies and their impact on various asset classes.

While investors remain cautious, the week has been favorable for gold, which is often viewed as a safe-haven asset in times of economic uncertainty or volatility.