Gold holds near record highs on rate-cut optimism

Gold prices held close to record highs, as signs of a weakening US labour market reinforced expectations that the Federal Reserve will make its first interest rate cut of the year this week.

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The afternoon fixing on Friday in London was $3,651.10 an ounce, compared with $3,594.55 a week earlier. Thai selling prices were quoted at 54,650 baht per baht-weight (15.2 grammes), up 350 baht from the previous week.

"Weaker employment and spotty inflation ... priced in with the Fed having to cut rates is pushing metals higher because there is the risk of longer-term inflation," said Daniel Pavilonis, senior market strategist at RJO Futures.