Gold prices edged higher in thin holiday trade during Friday's Asian session, with the metal retesting levels to fresh two-week highs as a softer United States dollar and ongoing geopolitical unease kept safe-haven demand intact.
By 4:10 pm AEDT (5:10 am GMT), the metal was up 0.6% at US$4,183.61 per ounce.
The broader trend remains firmly bullish. Gold is on track for a fourth straight monthly gain, extending October’s strong rally that briefly pushed prices toward the $4,400 region.
Persistent geopolitical instability and continued speculation over further Federal Reserve rate cuts have provided steady support for bullion.
The U.S. dollar held near multi-day lows in subdued trading, with U.S. markets closed on Thursday for Thanksgiving. The cautious dollar backdrop has added an additional tailwind for gold.
Market pricing continues to favour the bullish case: Traders currently assign an 84.7% probability of another Fed rate cut at the December meeting, according to the CME Group FedWatch Tool.
Further out, markets expect around 86 basis points of easing by the end of 2026 - a trajectory that remains supportive for non-yielding assets such as gold.
A potential brightening in global sentiment, especially if Russia-Ukraine peace talks progress, could soften safe-haven flows. But for now, any dips in gold have been met with firm demand, keeping the metal anchored above the $4,160–$4,180 range.
