Gold prices traded steady in a narrow range during Friday's Asian trade, consolidating near record levels and on course to extend their winning streak to a seventh straight week.
By 3:55 pm AEST (5:55 am GMT), spot gold slipped just 55 cents to US$3,855.12 per ounce, holding firm above the US$3,850 threshold.
While prices pulled back slightly from recent highs, the precious metal continues to benefit from mounting expectations that the U.S. Federal Reserve will cut rates at its upcoming meeting.
The United States dollar’s latest recovery attempt has faded, with the ongoing government shutdown triggering a data blackout that has added to market uncertainty.
The absence of key economic releases, including the nonfarm payrolls report, has reinforced dovish Fed bets, lending support to gold as a non-yielding safe-haven asset.
Geopolitical tensions also underpin demand as Munich airport reopened after drone sightings on Thursday night forced its closure and the cancellation of over a dozen flights.
In recent days, 20 Russian drones reportedly entered Poland, while Russian MiG-31 fighter jets breached Estonian airspace, sparking alarm among NATO allies.
The developments came as European Union leaders met in Copenhagen, and the Group of Seven pledged to toughen enforcement of sanctions against Russia, vowing to phase out remaining imports and penalise nations and companies helping to fund Moscow’s war effort.
Looking ahead, analysts caution that gold could face retracement if investors shift focus away from U.S. political uncertainty and resume risk-taking, but for now, the metal remains well supported by safe-haven flows and expectations of monetary easing.
