Gold prices rose in Asian trading on Friday, holding just below record highs before giving back some gains, as a softer US labour market reinforced expectations of a Federal Reserve rate cut next week.
Spot gold traded at $3,641.11 per ounce by 10:00 GMT.
The yellow metal is on track for a fourth consecutive weekly rise and has gained nearly 40% year-to-date. While US consumer prices rose 0.4% in August, lifting annual inflation to 2.9%, the highest in seven months, labour data pointed to weakness, with weekly jobless claims hitting a near four-year high and payroll growth slowing.
Markets have become increasingly confident of imminent policy easing following weaker-than-expected producer price data and large revisions to jobs figures. CME FedWatch indicates nearly a full probability of a 25-basis-point cut at the September 16–17 Fed meeting, with some traders even pricing in a larger easing move.
Supportive factors for gold include a softer dollar, falling US Treasury yields, ongoing central bank buying, and safe-haven demand amid trade uncertainty linked to President Trump’s tariff policies.