Gold experienced a modest increase on Friday, positioning itself for an eighth consecutive weekly gain. This uptick is attributed to ongoing geopolitical and economic uncertainties, coupled with anticipations of interest rate reductions from the U.S. Federal Reserve, which have collectively enhanced demand for the precious metal. Spot gold increased by 0.1% to $3,977.87 per ounce as of 0120. Bullion has increased by 2.3% this week. Gold futures in the United States for December delivery increased by 0.5%, reaching a price of $3,992.40.

John Williams indicated on Thursday that he would be amenable to a rate cut, even as some policymakers express concerns regarding rising inflation, implying that such a decision may not be straightforward. Market participants are factoring in a 25-basis-point reduction in October and an additional cut in December, with probabilities of 95% and 82%, respectively. Markets this week have contended with political turmoil in Japan and France, coupled with a continuing U.S. government shutdown. These factors have contributed to a lack of confidence among investors, prompting a flight to safety in gold. Last week saw an uptick in the number of Americans submitting new applications for unemployment benefits, as estimated by economists on Thursday.

This trend suggests the possibility of early layoffs among contractors due to the ongoing U.S. government shutdown. On Wednesday, bullion surpassed the $4,000 per ounce mark for the first time, achieving a record high of $4,059.05. The asset, which does not generate yield and is typically viewed as a safeguard amid geopolitical and economic instability, has appreciated approximately 52% in value this year. SPDR Gold Trust, the largest gold-backed exchange-traded fund globally, reported a decrease in its holdings by 0.11%, bringing the total to 1,013.44 metric tons on Thursday, down from 1,014.58 tons on Wednesday.

Kotak Mahindra Asset Management Company has announced a temporary suspension of new lump-sum and switch-in investments into the Kotak Silver ETF Fund of Fund, starting from October 10, 2025, according to a statement released on Thursday. In other markets, spot silver increased by 1.2% to $49.70 per ounce, following its peak of $51.22 reached on Thursday. Platinum increased by 0.4% to $1,625.30, while palladium saw a rise of 1% to $1,426. 0300 China Overall Comprehensive Risk Q4 0300 Japan Overall Comprehensive Risk Q4 1400 US University of Michigan Sentiment Preliminary October.