Gold prices stabilized near a seven-week high on Friday, supported by expectations of further interest rate cuts next year. This came after the Federal Reserve (the U.S. central bank) defied market bets for a monetary tightening, while silver held close to the record high it hit yesterday.
The spot gold price fell 0.2% to $4,275.44 per ounce by 0236 GMT, but remains on course for a weekly gain of 1.8%, having reached its highest level since October 21 yesterday.
U.S. gold futures declined 0.2% to $4,306.20.
The dollar is on track for a third consecutive weekly drop, making gold more affordable for buyers holding other currencies.

Gold. (X)

ANZ analyst, Soni Kumari, stated: "Gold appears very well-positioned, and investors are taking cues from the fact that the market still expects two rate cuts next year."
On Wednesday, the Federal Reserve issued its third rate cut of the year by 25 basis points amid a divisive decision, and investors interpreted both the move and Chair Jerome Powell’s remarks as signaling a reduced appetite for further monetary tightening. Officials indicated that any additional cuts would depend on clearer signs of easing inflation and a slowing labor market.
U.S. jobless claims rose by the largest amount in about four and a half years last week, but this surge wasn't seen as indicating a notable deterioration in labor market conditions.
Assets that don't yield returns, such as gold, tend to rebound when interest rates are low, and investors are now awaiting next week's U.S. nonfarm payrolls report for more clues on the Federal Reserve's policy path.
Regarding other precious metals, spot silver gained 0.4% to $63.84 per ounce, after hitting a record $64.31 yesterday, Thursday, and is heading for a 9.2% weekly gain.
Silver prices have more than doubled this year, supported by strong industrial demand, dwindling inventories, and its inclusion on the U.S. list of critical minerals. Platinum increased 0.2% to $1,698.45, while palladium rose 1.9% to $1,512.0. Both metals are on track for weekly rises.