Gold Holds Near 7-Week High as Cooling Labor Data Boosts Rate-Cut Bets

Gold traded around $4,270/oz on Friday, staying close to a seven-week peak and heading for a weekly gain as expectations for further US monetary easing strengthened.

Jobless claims for the week ending Dec. 6 rose more than expected, marking their highest level in over two months and reinforcing views that the Fed may deliver two rate cuts in 2026.

This comes after the Fed issued its third 25 bps cut of the year and struck a less hawkish tone than anticipated. Chair Powell signaled that additional rate hikes are essentially off the table, even though the Fed’s projections indicate only one cut next year.

Meanwhile, the Fed’s plan to purchase about $40B in short-term Treasury bills to ease money-market pressures is expected to help cap short-term yields — providing further support for precious metals.