Gold steadied after three days of gains, supported by the prospect of further monetary easing in the US following a rate cut this week. Silver traded near a record high.
Bullion was little changed at around $4,280 an ounce, having climbed 1.2% in the previous session. Federal Reserve policymakers left the door open to more interest-rate cuts next year after lowering the cost of borrowing on Wednesday. Swap traders are betting on two reductions in 2026, even as the US central bank signals only one.
A lower interest-rate environment is a tailwind for precious metals including gold and silver, which don’t pay interest. Adding further support to bullion, the Fed will on Friday begin buying $40 billion of Treasury bills per month as it looks to rebuild reserves in the financial system.
Gold has surged more than 60% this year and silver has more than doubled, with both metals on track for their best annual performances since 1979. The scorching rallies have been underpinned by elevated central-bank buying and a retreat by investors from sovereign bonds and currencies.
Holdings in gold-backed exchange-traded funds have risen every month this year except May, according to the World Gold Council. Meanwhile, silver has been bolstered in recent weeks by surging demand, as well as tightness and dislocations across major trading hubs. The white metal hit a record of $64.3120 an ounce on Thursday.
Gold was little changed at $4,280.34 an ounce as of 7:30 a.m. in Singapore. Silver edged down 0.1% to $63.5080. Platinum and palladium fell slightly. The Bloomberg Dollar Spot Index was flat, having closed the previous session down 0.3%.
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