Washington: Gold prices moved higher on Friday as the US dollar weakened and expectations increased that the Federal Reserve may soon cut interest rates. Investors turned to the safe metal as uncertainty grew over the US economy and the ongoing government shutdown.

Spot gold climbed about 0.7 percent to around 4005 dollars per ounce in early trade. The gain followed a drop in the US dollar index, which made gold more affordable for buyers using other currencies. The shift in market sentiment came after recent data showed slower growth in private sector jobs, with losses seen in government and retail positions.

Traders now see around a 67 percent chance that the Federal Reserve will reduce interest rates in December. That estimate is slightly higher than earlier in the week, suggesting growing confidence that the central bank will act to support the economy.

The prolonged government shutdown, now the longest in US history, has also pushed investors toward gold as a safe haven. The uncertainty surrounding wages, inflation, and policy decisions has increased demand for stable assets.

Other precious metals also saw gains. Silver rose about 1.5 percent to 48.69 dollars per ounce, while platinum and palladium edged higher but were still heading for weekly losses.

Despite the recent rise, gold remains below its October 20 record of about 4381 dollars per ounce. Analysts say that if the Federal Reserve follows through with a rate cut next month, prices could move closer to 4200 dollars per ounce by the end of the year.

However, some economists caution that stronger employment or inflation data could delay the central bank’s plans and slow down the upward trend in gold prices. For now, investors continue to watch every signal from the Fed and the US economy to decide their next move in the global commodities market.