Gold Edges Higher as Rate Cut Hopes Grow; Silver Hits 13-Year Peak on Industrial Demand

Gold offered a glimmer of hope for many investors who kept an eye on the tumultuous markets this week. Amid mounting jobless claims and softer labor data in the U.S., expectations for a Federal Reserve interest rate were reinforced. That helped gold recover a bit of lost ground and lay the foundation for a weekly gain even as uncertainty of a more general sort continued to roil world financial markets.

Spot gold was up 0.2% to $3,359.26 an ounce on Friday at 11:51 GMT. For the week, bullion rose 2.1%, as lackluster economic data weighed on the dollar and fueled talk of interest-rate cuts. U.S. gold futures also rose 0.2% to $3,382.70.

Investors were responding to a report from the Labor Department on Thursday that said unemployment claims had surged to a seven-month high. Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, said the labor market signals outweighed President Donald Trump's recent phone call with Chinese President Xi Jinping in impacting gold. The leaders talked about trade and the supply chains for critical minerals, but the effect on investor sentiment was limited.

The next big market driver is the U.S. non-farm payrolls release later Friday. Analysts anticipate the addition of about 130,000 jobs in May, with the unemployment rate expected to remain 4.2%. Markets are, in turn, likely to rely more upon the notion that the Federal Reserve may not wait as long as it once did to deliver rate cuts if the numbers disappoint.

Gold, which is popular as a safe store of wealth during times of economic and political turmoil, typically rises when interest rates are low. The decline in yields makes non-yielding assets like gold more attractive. In the meantime, it has been Silver's time to shine this week. While it fell 0.1% on Friday to $36.11 an ounce, it earlier hit its most in more than 13 years. Analysts point to strong industrial demand and tight supply as driving the rally.

Platinum rose too, gaining 2.4% to $1,157.11 — its highest level since March 2022. Palladium rose 1.5 percent to $1,020.75.

Short-term gold potential is safely on hold, but investors are starting to look at undervalued metals.