Gold prices rose on Friday, reaching around $4,220 per ounce, as investors bet that the Federal Reserve may lower interest rates next week.
Recent U.S. jobs reports suggested the labor market is slowing. ADP reported 32,000 fewer private payrolls than expected, while Challenger recorded 71,000 layoffs in November, bringing the total for the year to about 1.17 million.
These numbers have increased expectations that the Fed could ease monetary policy to support the economy.
Adding to the speculation, reports suggest White House economic adviser Kevin Hassett might succeed Fed Chair Jerome Powell in May, which some see as a sign the Fed could adopt a more aggressive approach to rate cuts.
Investors are also waiting for the September Personal Consumption Expenditures (PCE) report, the Fed’s preferred measure of inflation.
The report, due later today, could help clarify the timing and pace of any rate changes ahead of next week’s decision.
Gold prices rose to $4,224.27 per ounce on December 5, up 0.38% from the previous day. Over the past month, gold has gained 6.21%, and it is up 60.42% from a year ago, according to trading data.
Despite recent gains, gold’s weekly performance is expected to remain relatively flat.
