Gold headed for a third weekly gain after notching a string of records on expectation of further interest-rate cuts by the US Federal Reserve.

Spot bullion was down Friday but has added 1.6% over the week, and reached an all-time high of $2,685.58 an ounce on Thursday. Silver has been rising even faster than gold, touching the highest since 2012.

The Fed kicked off its pivot last week with a half-point cut, and traders have boosted bets on another 75 basis points of reductions this year. Lower rates tend to benefit gold, which doesn't pay interest. The bank's preferred inflation indicator for August is due later Friday, which could influence the path of monetary easing.

Gold has rallied by almost a third this year on rate-cut optimism, as well as robust central-bank purchases and heightened geopolitical tension that's driven haven demand. A US presidential election that's too close to call — and could be massively consequential for markets — is less than six weeks away.

Spot gold slipped 0.3% to $2,664.31 an ounce as of 10:57 a.m. in London. The Bloomberg Dollar Spot Index held steady. Silver, platinum and palladium all edged lower.(ayu)

Source: Bloomberg