PRECIOUS-Safe-haven demand, rate cut bets set gold on course for eighth straight weekly gain

* Gold hit a record high of $4,059.05 on Wednesday * Silver hovers below record high of $51.22/oz hit on Thursday * Platinum, palladium headed for weekly gains (Updates for U.S. morning hours) By Anushree Mukherjee and Anmol Choubey Oct 10 (Reuters) – Gold prices rose on Friday and remained on track for an eighth successive weekly gain, buoyed by expectations of a U.S. Federal Reserve rate cut this month, while broader economic and political uncertainty added to its safe-haven appeal. Spot gold was up 0.3% to $3,985.60 per ounce as of 8:41 am ET (1241 GMT). The metal was on track for a weekly gain of 2.6% so far this week. U.S. gold futures for December delivery rose 0.7% to $4,001.50. Non-yielding bullion, which hit a record high of $4,059.05 on Wednesday, is traditionally considered a hedge during times of broader uncertainty. Geopolitical risks, alongside strong central bank gold buying, exchange-traded funds inflows, U.S. rate cut expectations and economic uncertainties stemming from tariffs, have all contributed to gold's rally. "It appears that expectations of US Fed rate cuts and investor concern about fiscal sustainability globally are supporting gold prices," Hamad Hussain, climate and commodities economist at Capital Economics. Minutes from the U.S. Federal Reserve's September meeting revealed policymakers were open to rate cuts to address labour market risks, though inflation concerns persisted. Investors anticipate two Fed rate cuts of 25 basis points each in October and December. Markets are closely monitoring risks related to the potential collapse of the French government and the ongoing government shutdown in the United States. The U.S. dollar fell 0.3%, making greenback-priced bullion cheaper for overseas buyers. "On balance, there is a risk of a short-term pullback in prices given how quickly gold prices have risen in recent weeks. But over the next couple years, gold prices are likely to grind higher," Hussain added. Silver is benefiting from the same factors driving gold's rally, alongside concerns about supply deficit and rising demand for the metal. Silver rose 1.7% to $49.95 per ounce a day after touching a record high of $51.22. It has gained 73% so far this year. Silver futures on Comex for December 2025 were trading at $48.25. "Silver’s backwardation is a loud signal — physical demand is crushing paper supply….If backwardation holds and physical demand keeps rising, silver breaking and sustaining above $50 is very realistic," said Alex Ebkarian, COO at Allegiance Gold. Backwardation is when a commodity's spot price is higher than its futures price. In other metals, platinum was up 0.6% to $1,628.75 and palladium gained 3.8% to $1,464.51. Both these metals were headed for weekly gains. (Reporting by Anushree Mukherjee and Anmol Choubey in Bengaluru; Editing by Vijay Kishore)

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