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Gold is in a secular bull market, analyst says

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Israel ratifies ceasefire agreement with Hamas

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Silver hovers below record high of $51.22/oz hit on

Thursday

(Adds latest comment, updates prices)

By Anmol Choubey

Oct 10 (Reuters) - Gold rebounded from earlier losses on

Friday and was on track for an eighth consecutive weekly gain,

driven by broad political and economic uncertainty and

expectations of further U.S. rate cuts, while silver hovered

near a record high.

Spot gold, which hit a record high of $4,059.05 on

Wednesday, was up 0.5% to $3,992.97 per ounce as of 0919 GMT - a

gain of 2.7% so far this week. U.S. gold futures for

December delivery rose 0.8% to $4,005.30.

Non-yielding bullion is traditionally considered a hedge

during times of broader uncertainty.

"Gold is no longer just a defensive asset - it's becoming an

offensive one. In this environment, it stands as the strongest

alternative to the dollar and a true measure of trust in the

global financial system," said Alex Ebkarian, COO at Allegiance

Gold, adding that gold is in a secular bull market for the next

five years.

Multiple factors were supporting the rally, including

geopolitical risks, robust central bank buying, exchange-traded

fund inflows, expectations of U.S. rate cuts, and trade-related

uncertainties.

Silver rose 3.7% to $50.95 per ounce a day after

touching a record high of $51.22. It has gained 76% so far this

year.

"Given the increase in lease rates, a pronounced

backwardation curve, and lack of liquidity in London OTC, one

should anticipate greater volatility for silver," said Hugo

Pascal, a precious metals trader at InProved.

Backwardation is when a commodity's spot price is higher

than its future price.

"If contango (the opposite of backwardation) returns and

stress eases, a short pullback could emerge (in silver) - and

that may prove to be the next great buying opportunity,"

Ebkarian said.

The U.S. dollar index fell 0.3%, making

greenback-priced bullion cheaper for overseas buyers.

Meanwhile, 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 still anticipate two Fed rate cuts of 25 basis

points each in October and December.

Israel's government ratified a ceasefire with the

Palestinian militant group Hamas on Friday.

In other metals, platinum was up 0.6% to $1,628.94

and palladium gained 1.9% to $1,438.47. Both these metals

were headed for weekly gains.