Gold heads for its best weekly performance amid interest rate cut hopes

Gold prices rose today, Friday, and are on track to record their best weekly performance since April 5, after economic data reinforced bets that the Federal Reserve (US central bank) will lower interest rates.

According to Reuters, by 0212 GMT, gold in instant transactions rose 0.2% to $2,350.87 per ounce, after recording the highest level in more than two weeks earlier.

Prices increased 2.2% since the beginning of the week. US gold futures also rose 0.7% to $2,356.90.

Yesterday, Thursday, data showed that the number of Americans who filed new applications for unemployment benefits increased more than expected last week.

“Gold regained its magic this week thanks to some weak US macro data,” said Tim Waterer, chief market analyst at KCM Trade.

“First-time jobless claims numbers were worse than expected, which comes on the heels of weaker non-farm payrolls numbers last Friday.”

Traders expect the Federal Reserve to begin a monetary easing cycle in September. Lower interest rates reduce the opportunity cost of owning the yellow metal.