Gold holds near $4,000 after record high

Spot gold hovered just below the $4,000 mark on Friday, as investors took a breather following a rally that lifted the precious metal to an all-time high of $4,059 on Wednesday.

The metal has risen about 52% this year and was on track for a 2.2% weekly gain—its eighth consecutive advance—driven by persistent geopolitical tensions, global economic uncertainty, and growing expectations of further US interest rate cuts.

While Israel’s government ratified a ceasefire with Hamas on Friday, paving the way to halt hostilities in Gaza within 24 hours, investors remain focused on broader headwinds, including slowing global growth, sticky inflation, and continued diversification away from US assets and the dollar.

Meanwhile, the US government shutdown is set to enter its third week, while political turmoil in France continues following the resignation of PM Lecornu.

On the monetary policy front, the Fed is widely expected to deliver 25 bps rate cuts in each of its remaining meetings this year.