Gold prices edged higher on Friday as a weaker dollar and disappointing U.S. private-sector jobs data lifted expectations of another Federal Reserve rate cut, while a prolonged government shutdown bolstered safe-haven demand.

Spot gold rose 0.5% to $3,996.67 per ounce as of 05:37 GMT, although it remained on track for a weekly loss of 0.2%. The metal has dropped nearly 9% since hitting a record $4,381.21 on October 20. U.S. gold futures for December delivery gained 0.3% to $4,004.00.

Data on Thursday showed the U.S. economy shed jobs in October, with losses in government and retail sectors. Analysts pointed to cost-cutting and growing AI adoption among businesses as key factors behind a surge in layoffs.

“The private jobs data is still indicating that a rate cut in December is likely, and that’s why gold prices are getting some kind of support,” said Soni Kumari, commodity strategist at ANZ.

The dollar weakened broadly as investors reacted to signs of softness in private employment reports amid the absence of official labor data due to the government shutdown.

Markets now price in a 69% chance of a Fed rate cut in December, up from around 60% a day earlier. The Fed already lowered rates last week, and Chair Jerome Powell hinted it could be the final cut for this year.

The ongoing U.S. government shutdown, now the longest on record, has further heightened market uncertainty and pushed investors toward gold. With federal data releases suspended, the data-dependent Fed is relying on private surveys for guidance.

Non-yielding gold typically benefits in low interest rate environments and during economic instability.

Among other precious metals, spot silver climbed 1% to $48.46 per ounce, platinum gained 0.2% to $1,544.15, and palladium advanced 0.5% to $1,381.75. However, all three were still headed for weekly losses amid volatile market sentiment.