Khaberni - Gold maintained its stability during Friday's transactions, heading towards gains for the seventh consecutive week, supported by expectations of a cut in US interest rates and ongoing concerns about the government shutdown in the United States.
Price Update
By 0125 GMT, spot gold settled at $3851.48 per ounce after recording its highest level ever at $3896.49 in the previous session. The precious metal has gained 2.5 percent so far this week.
U.S. gold futures for December delivery rose 0.2 percent to $3875.50, according to Reuters data.
The U.S. government shutdown extended to its second day on Thursday, which may delay key economic data including the closely-watched non-farm payroll report scheduled for release today, Friday.
Lorie Logan, president of the Federal Reserve Bank of Dallas, said that the U.S. central bank had taken appropriate precautions against any sharp deterioration in the labor market by cutting interest rates last month, but it needs to be "cautious" before proceeding with monetary easing.
However, the markets expect a nearly certain cut of 25 basis points in the primary interest rate this month, according to the CME FedWatch tool.
Gold is usually considered a safe haven asset during times of political and economic uncertainty and thrives in a low-interest rate environment. The metal has risen 47 percent this year so far.
As for other precious metals, silver in spot transactions dropped 0.4 percent to $46.79 per ounce. Platinum fell 0.3 percent to $1563.86, while palladium rose 0.2 percent to $1243.41.
