By: Economy Middle east

Gold prices climbed on Friday as the U.S. dollar weakened following soft U.S. private-sector job data, which pointed to a cooling labor market and revived expectations of another Federal Reserve rate cut. The ongoing government shutdown also bolstered demand for the safe-haven metal.

In the UAE, gold rates also rose, with 24-carat gold gaining AED1.75 to AED481.75 and 22-carat gold rising AED1.75 to AED446.25. Additionally, 21-carat gold edged up AED1.5 to AED427.75, and 18-carat gold gained AED1.75 to AED366.75.

Globally, spot gold rose 0.33 percent to $3,996.63 per ounce as of 5:32 GMT but was still on track for a 0.3 percent weekly decline. The metal has dropped nearly 8 percent since reaching a record high of $4,381.21 on October 20.

Meanwhile, U.S. gold futures for December delivery gained 0.26 percent to $4,001.20 per ounce.

Rate cut bets grow as private employment falls

The U.S. economy lost jobs in October, weighed down by declines in the government and retail sectors, while a wave of cost-cutting and the growing use of artificial intelligence contributed to a jump in announced layoffs, data showed on Thursday. The data continued to reinforce expectations of a Federal Reserve rate cut in December, lending support to gold prices.

The U.S. dollar also fell, leading losses among major currencies, as investors who have no access to official labor data amid the government shutdown focused on signs of softness in private employment surveys. A weaker jobs market typically raises the likelihood of policy easing.

Traders now assign a 69 percent probability to a Federal Reserve rate cut in December, up from around 60 percent in the previous session, according to the CME FedWatch tool. The Fed lowered interest rates last week, with Chair Jerome Powell indicating it could be the final cut of the year.

“Gold is currently undergoing a consolidation phase following a strong rally that accelerated in August, driving a nine-week rally of more than 30 percent to a fresh record near $4,400 before suffering a near 500-dollar correction. From a technical perspective, the market has yet to test levels that would signal a deeper corrective phase or an end to the structural bull trend. However, that does not insulate it from temporary liquidation flows if volatility spikes, or simply if the general level of risk appetite takes a hit as we saw in Tuesday’s session,” said Ole Hansen, head of commodity strategy, Saxo Bank.

Market attention remains on U.S. government shutdown

Market attention is now shifting to the upcoming macroeconomic data and the ongoing U.S. government shutdown, both of which are fueling safe-haven demand for gold.

A prolonged congressional impasse has led to the longest government shutdown in U.S. history, leaving investors and the data-dependent Federal Reserve increasingly reliant on private-sector indicators to gauge economic conditions.

Gold prices, which offer no yield, typically benefit in periods of low interest rates and heightened economic uncertainty.

“Gold’s pause still looks like a breather, not a breakdown. Seasonal softness, temporary Chinese policy noise and a firmer dollar explain the short-term retreat, but none change the longer-term narrative. Once this corrective phase runs its course, the same forces that fuelled this year’s rally—debt, inflation and diversification demand—are likely to reassert themselves, making the next meaningful leg higher a 2026 story,” Hansen added.

Other precious metals

As gold prices rose, the precious metals market saw mixed movement on Friday. Spot silver rose 0.7 percent to $48.31 per ounce but was on track for a weekly decline of 0.7 percent. Platinum slipped 0.4 percent to $1,534.21, down nearly 2 percent for the week, while palladium gained 0.3 percent to $1,379.33 and was poised for a 0.5 percent weekly increase.