Ad News Live
December 12, 2025
Gold Price Rise Reasons Today: Gold advanced to its strongest level in nearly two months on Friday, supported by a softer U.S. dollar, rising expectations of interest rate cuts, and heightened safe-haven buying amid renewed geopolitical uncertainty.
Silver also surged to a fresh record, underscoring the broader rally in precious metals. Spot gold gained 0.7 percent to $4,311.73 per ounce by 0945 GMT.
The price reached its highest point since October 21 and positioned the metal for a weekly increase of 2.7 percent. U.S. gold futures climbed 0.7 percent to $4,343.50 on Friday.
The advance followed a continued slide in the U.S. dollar, which hovered near a two-month low and was on pace for its third straight weekly decline.
The weaker currency made bullion more accessible to buyers outside the United States. Market watchers noted that economic and geopolitical pressures were adding further support to the metal.
A sharp jump in weekly U.S. jobless claims and rising tensions between Washington and Caracas helped fuel demand for traditional safe-haven assets.
“These factors are keeping gold well supported and reinforcing strong haven demand,” said Zain Vawda, an analyst with MarketPulse by OANDA.
U.S. jobless claims surged last week by the largest amount in nearly four and a half years, undoing the sharp decline seen just a week earlier. The jump added fresh signs of strain in the labor market.
The Federal Reserve cut interest rates by 25 basis points on Wednesday, marking its third reduction of the year.
Officials signaled a cautious stance on whether more cuts will follow, citing the need for additional economic clarity.
Traders are now pricing in two rate cuts for next year. Attention is turning to next week’s U.S. non-farm payrolls report, which is expected to offer further guidance on the Fed’s policy trajectory.
Gold continued to draw support from expectations of lower interest rates, a backdrop that typically strengthens demand for non-yielding assets.
Geopolitical tensions also remained in focus. The United States is preparing to intercept additional vessels carrying Venezuelan oil after authorities seized a tanker earlier this week.
The move signaled a possible escalation in enforcement measures tied to sanctions. Physical demand in key Asian markets showed further signs of weakness.
India recorded wider gold discounts this week as buying stayed muted despite the ongoing wedding season.
In China, elevated spot prices continued to weigh on consumer interest, limiting purchases even as seasonal demand usually picks up.
Spot silver edged up 0.5 percent to $63.87 per ounce on Friday after setting a fresh record of $64.32 earlier in the day.
The metal was poised for a weekly increase of 9.5 percent, underscoring another strong stretch of gains. Silver prices have more than doubled since the start of the year.
The rally has been supported by steady industrial demand, shrinking global inventories, and the metal’s designation on the U.S. critical minerals list, a move that has drawn additional attention from investors.
“Silver continues to draw strength from solid industrial demand and persistent concerns about supply shortages,” said Ole Hansen, head of commodity strategy at Saxo Bank.
He noted that a tight market, combined with heightened speculative activity from retail investors, has driven notable inflows into silver-focused exchange-traded funds.
Platinum also advanced on Friday, rising 0.8 percent to $1,708.11. Palladium climbed 2.2 percent to $1,516.95. Both metals were positioned to end the week with gains.
Follow Us
AD News Live
