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Gold hit a record high of $4,059.05 on Wednesday

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

Thursday

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Platinum, palladium headed for weekly gains

(Updates for U.S. morning hours)

By Anushree Mukherjee and Anmol Choubey

Oct 10 (Reuters) - Gold prices rose on Friday and

remained on track for an eighth successive weekly gain, buoyed

by expectations of a U.S. Federal Reserve rate cut this month,

while broader economic and political uncertainty added to its

safe-haven appeal.

Spot gold was up 0.3% to $3,985.60 per ounce as of

8:41 am ET (1241 GMT). The metal was on track for a weekly gain

of 2.6% so far this week.

U.S. gold futures for December delivery rose 0.7% to

$4,001.50.

Non-yielding bullion, which hit a record high of $4,059.05

on Wednesday, is traditionally considered a hedge during times

of broader uncertainty.

Geopolitical risks, alongside strong central bank gold

buying, exchange-traded funds inflows, U.S. rate cut

expectations and economic uncertainties stemming from tariffs,

have all contributed to gold's rally.

"It appears that expectations of US Fed rate cuts and

investor concern about fiscal sustainability globally are

supporting gold prices," Hamad Hussain, climate and commodities

economist at Capital Economics.

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 anticipate two Fed rate cuts of 25 basis points

each in October and December.

Markets are closely monitoring risks related to the

potential collapse of the French government and the ongoing

government shutdown in the United States.

The U.S. dollar fell 0.3%, making greenback-priced

bullion cheaper for overseas buyers.

"On balance, there is a risk of a short-term pullback in

prices given how quickly gold prices have risen in recent weeks.

But over the next couple years, gold prices are likely to grind

higher," Hussain added.

Silver is benefiting from the same factors driving gold's

rally, alongside concerns about supply deficit and rising demand

for the metal.

Silver rose 1.7% to $49.95 per ounce a day after

touching a record high of $51.22. It has gained 73% so far this

year.

Silver futures on Comex for December 2025 were

trading at $48.25.

"Silver's backwardation is a loud signal - physical demand

is crushing paper supply....If backwardation holds and physical

demand keeps rising, silver breaking and sustaining above $50 is

very realistic," said Alex Ebkarian, COO at Allegiance Gold.

Backwardation is when a commodity's spot price is higher

than its futures price.

In other metals, platinum was up 0.6% to $1,628.75

and palladium gained 3.8% to $1,464.51. Both these metals

were headed for weekly gains.