Gold surged past $4,300 an ounce on Friday, marking its biggest weekly gain since December 2008, as investors sought refuge in the precious metal amid geopolitical tensions, economic uncertainty, and growing expectations of U.S. interest rate cuts.
Spot gold climbed 0.2% to $4,332.17 per ounce by 1102 GMT, after hitting an all-time high of $4,378.69 earlier in the session. U.S. gold futures for December delivery rose 1% to $4,345.90.
Gold has advanced about 8% this week, briefly eyeing its strongest weekly rally since September 2008, when the collapse of Lehman Brothers triggered the global financial crisis.
“Rate-cut expectations, geopolitical risks, and ongoing banking concerns continue to create a highly supportive environment for gold,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. “However, short-term consolidation is possible given the overbought conditions.”
Gold’s relative strength index (RSI) currently stands at 88, signaling overbought territory.
Spot silver slipped 0.4% to $54 per ounce after reaching a record $54.47, following gold’s rally and a short squeeze in the spot market. Silver remains on track for a 7.4% weekly gain.
Global equities fell as tumbling bank shares and signs of credit stress among U.S. regional lenders spooked investors, further driving demand for safe-haven assets.
U.S. Federal Reserve Governor Christopher Waller voiced support for another rate cut, with investors anticipating a 25-basis-point reduction at the Fed’s October 29–30 meeting and another in December.
Meanwhile, tensions rose between Washington and Beijing as China accused the U.S. of spreading panic over its rare earth export curbs.
Gold, a traditional hedge against inflation and uncertainty, has jumped more than 66% this year, buoyed by geopolitical tensions, central bank purchases, de-dollarisation trends, and strong exchange-traded-fund (ETF) inflows.
“Resilient and massive ETF inflows are pushing prices higher,” said Michael Haigh, global head of commodities research at Société Générale.
SPDR Gold Trust, the world’s largest gold-backed ETF, reported its holdings rose to 1,034.62 tonnes on Thursday — the highest since July 2022.
HSBC raised its 2025 average gold price forecast by $100 to $3,455 per ounce and projected the metal could hit $5,000 an ounce in 2026, supported by persistent global risks.
Among other precious metals, platinum dropped 4% to $1,644.75 per ounce, while palladium declined 2.2% to $1,578.07.
