Gold maintains fifth straight weekly gain

Gold rises on Friday after the US Federal Reserve cut interest rates by a quarter-point this week and signals further policy easing

Gold prices rose on Friday, recording their fifth consecutive weekly gain, as markets monitored Fed officials’ remarks for further clues on the monetary policy outlook after the first rate cut of 2025.

Gold futures for December delivery rose 0.74% ($27.5) to $3,705.80 an ounce, achieving a 0.52% weekly gain.

This was supported by the Fed’s decision on Wednesday to lower interest rates by a quarter-percentage point, alongside warnings of persistent inflationary pressures and labor market weakness.

Non-yielding assets like gold typically benefit from an easier monetary policy, while also serving as a safe haven against inflation and economic uncertainty.

Fed Bank of Minneapolis President Neel Kashkari said job market risks warranted this week’s rate cut and likely reductions at the central bank’s next two meetings.