Gold was on track for a seventh straight weekly gain on Friday, buoyed by expectations of further U.S. interest rate cuts this year and worries over the impact of a U.S. government shutdown.
On the day, spot gold was down 0.3% at $3,844.01 per ounce, as of 0434 GMT, as the dollar firmed. The bullion hit an all-time high of $3,896.49 on Thursday and has risen 2% so far this week.
U.S. gold futures for December delivery were flat at $3,867.70.
The dollar index extended gains against its rivals, making gold more expensive for other currency holders.
“Climb in the dollar caused a minor speed bump for the gold price, but the precious metal is still well within shouting distance of the $3,900 level,” said KCM Trade Chief Market Analyst Tim Waterer.
“Overall, with a U.S. government shutdown creating uncertainty over the GDP impact, and with lower interest rates likely arriving again this month, conditions remain ripe for gold to continue marching forward.”
The shutdown extended to a second day on Thursday, potentially delaying key economic data, including the key non-farm payrolls report due on Friday.
Federal Reserve Bank of Dallas President Lorie Logan said the Federal Reserve appropriately took out some insurance against any sharp deterioration in the labour market with its rate cut last month, but needed to be “cautious”.
Recent U.S. data lifted expectations for further cuts, with traders pricing in a near-certain 25 basis-point reduction this month, according to CME Group’s FedWatch tool.
Gold, often used as a safe store of value during times of political and financial uncertainty, thrives in a low-interest-rate environment. Bullion has risen 47% so far this year.
Meanwhile, the Perth Mint’s gold product sales in September jumped 21% from the previous month, while silver sales rose to a five-month high.
Elsewhere, spot silver eased 0.2% to $46.85 per ounce, platinum fell 0.6% to $1,559.26 and palladium gained 0.3% to $1,244.32.
