Spot gold was up 1.2% at $4,280.08 per ounce late Thursday, highest since Oct. 21, before declining marginally to $4,270.04 Friday morning.
Spot silver rose nearly 4% to $64.22 per ounce, hovering near the record high of $64.31 it hit earlier in the session.
“Silver seems to be pulling gold up with it and it’s also pulling up platinum and palladium…there’s a lot of momentum behind it right now,” said Marex analyst Edward Meir.
The U.S. dollar slipped to an eight-week low against a basket of rival currencies, making greenback-priced gold more affordable for overseas buyers.
“Inflation hasn’t really come back down to the Fed’s 2% target, so, when you’re lowering rates in an inflationary environment that is still not optimum, and that’s very bullish for gold,” Meir added.
The Federal Reserve on Wednesday delivered its third consecutive quarter-point cut, while policymakers also signaled a likely pause in further reductions as they monitor labor market trends and inflation that “remains somewhat elevated”.
Lower interest rates tend to be favorable to gold, as it is a non-yielding asset.
U.S. President Donald Trump has advocated for lower interest rates since the start of his second term in January, and his nominee for the next Federal Reserve chair is expected to maintain that stance. White House economic adviser Kevin Hassett is currently viewed as the leading candidate for the position.
Investors now await the monthly U.S. non-farm payrolls report, set to be released on December 16, for fresh cues on the Fed’s policy path.
Meanwhile, India’s pension regulator on Wednesday permitted investments in gold and silver ETFs for the country’s pension funds.
Elsewhere, platinum gained 2.5% to $1,697.61, while palladium rose 1.1% to $1,492.55.
