Gold holds firm, set for seventh weekly gain

October 03, 2025 (MLN):  Gold prices were steady on Friday and on track to log a seventh straight weekly advance, supported by mounting expectations of further U.S. interest rate cuts and unease over the economic fallout from a continuing government shutdown.

Spot gold was down 0.25% at $3,859.29 an ounce as of [4:19 pm] PST, according to data reported by Mettis Global.

The shutdown, which entered its third day on Friday, has already disrupted the release of key economic indicators, including the September non-farm payrolls report.

 Alternative figures from both private and public sources indicated the U.S. labor market showed little progress last month, with weak hiring activity and an unchanged unemployment rate.

Traders are heavily betting on further monetary policy easing. CME Group’s FedWatch tool shows markets pricing in a 97% chance of a 25-basis-point cut in October, along with an 88% likelihood of another reduction in December.

Dallas Fed President Lorie Logan commented that the central bank’s recent rate cut was a prudent step to safeguard against a sharp downturn in employment but cautioned against moving too aggressively.

Gold, traditionally favored as a safe-haven asset during periods of political and financial instability, tends to benefit in a low-rate environment. Prices have already surged 47% since the start of the year.

Physical demand also showed resilience. In India, purchases rose despite record-high prices, while trading in China remained shut due to a holiday.

Among other precious metals, spot silver gained 0.6% to $47.24 per ounce, platinum rose 0.5% to $1,576.25, and palladium advanced 1.4% to $1,258.25.

Copyright Mettis Link News