Gold held steady on Friday, set for a seventh straight weekly gain, bolstered by expectations of further U.S. interest rate cuts this year and worries about the effects of a possible U.S. government shutdown. Spot gold held steady at $3,851.48 per ounce, as of 0125, after hitting a high of $3,896.49 on Thursday. Bullion has seen a rise of 2.5% so far this week. Gold futures in the U.S. for December delivery rose by 0.2%, hitting a price of $3,875.50.

The U.S. government shutdown has now entered its second day as of Thursday, raising concerns about potential delays in the release of critical economic data, notably the highly anticipated non-farm payrolls report scheduled for Friday. Lorie Logan, President of the Federal Reserve Bank of Dallas, indicated that the U.S. central bank made a suitable decision to lower rates last month as a safeguard against a possible significant downturn in the labor market, while highlighting the importance of being “cautious” about any further easing.

Markets are expecting a strong likelihood of a 25 basis points cut to the Federal Reserve’s primary interest rate this month. Gold is often seen as a dependable asset during times of political and financial uncertainty, thriving in conditions marked by low interest rates. Bullion has seen a rise of 47% so far this year. The Perth Mint announced a 21% rise in gold product sales for September compared to the previous month, with silver sales hitting a five-month high.

SPDR Gold Trust, known as the largest gold-backed exchange-traded fund worldwide, announced a reduction in its holdings by 0.31%, decreasing the total to 1,015.74 metric tons on Thursday from 1,018.89 tons on Wednesday. Elsewhere, spot silver slipped 0.4% to $46.79 per ounce, platinum fell 0.3% to $1,563.86, and palladium gained 0.2% to $1,243.41.