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Gold headed for weekly gain of 2.2%

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Gold is in a secular bull market, analyst says

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Israel ratifies ceasefire agreement with Hamas on Friday

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

Thursday

(Updates for EMEA morning session)

By Anmol Choubey

Oct 10 (Reuters) - Gold prices edged lower on Friday as

investors booked profits following the metal's surge past the

$4,000-an-ounce mark earlier this week.

However, lingering broader uncertainty and expectations of

U.S. rate cuts kept the bullion on track for an eighth

consecutive weekly gain.

Spot gold was down 0.1% at $3,970.11 per ounce, as of

0901 GMT, but has climbed 2.3% so far this week. U.S. gold

futures for December delivery rose 0.3% to $3,983.70.

"That ($4,000) psychological threshold triggered

profit-taking among speculators and short-term traders, but

long-term investors should see it as confirmation that

confidence in paper money is eroding," said Alex Ebkarian, COO

at Allegiance Gold, adding that gold is in a secular bull market

for the next five years.

Non-yielding bullion, traditionally considered a hedge

during broader uncertainty, hit a record high of $4,059.05 on

Wednesday.

Multiple factors aided 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 2.8% to $50.51 per ounce on the day after

touching a record high of $51.22 in the previous session. It has

gained 75% 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 (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.

Also, weighing on safe-haven demand for bullion, Israel's

government ratified a ceasefire with the Palestinian militant

group Hamas on Friday.

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.

In other metals, platinum eased 0.8% to $1,606.20 and

palladium rose 0.3% to $1,415.25. Both these metals were

headed for weekly gains.