Gold futures opened at $4,621.60 per troy ounce on Friday, nearly unchanged from Thursday's close of $4,623.70. The price edged down in early trading but remains close to Wednesday's record high of $4,635.
The price softened following the release of weekly jobless claims data. For the week of Jan. 10, initial claims totaled 198,000, a decrease of 9,000 from the prior week and below the median forecast of 215,000. The Department of Labor revised the prior week's figure to 207,000 from 208,000.
This reduction in claims lessens pressure on the Federal Reserve to cut interest rates aggressively in 2026. According to CME FedWatch, there is currently less than a 5% chance the policymaking committee will lower rates by 25 basis points at its January meeting.
Lower interest rates typically benefit gold by reducing its opportunity cost compared to interest-bearing assets.
Compared to one week ago, the gold price is up 3.3%. It has risen 8.2% over the past month and 69.2% over the past year. On Dec. 29, the one-year gain was 74.5%.
Experts offer varying recommendations on gold allocations. Robert R. Johnson, a professor at Creighton University's Heider College of Business, does not advocate gold investing. He stated, "while having a small position in precious metals may dampen portfolio volatility in the short-run, the tradeoff between slightly dampened volatility and the lost long-term return is certainly not a prudent one, particularly for Gen Z/millennials with long investing time horizons."
Brett Elliott, director of content and SEO at American Precious Metals Exchange, suggests an allocation aligned with investing goals. Growth-oriented investors may consider 10% or 15%, while income investors might prefer 2% to 5% as gold provides no yield.
Blake McLaughlin, executive vice president at Axcap Ventures, cited historical data supporting a 5% to 8% allocation. He noted gold's resilience amid economic uncertainty and geopolitical unrest.
Thomas Winmill, portfolio manager at Midas Funds, believes most investors benefit from a 5% to 15% long-term allocation, particularly in gold mining companies via mutual funds. He advised considering risk tolerance and the mix of financial versus hard assets.
Vince Stanzione, CEO and founder at First Information, recommends a 20% allocation in physical gold or a gold ETF. He argued gold keeps pace with inflation and retains purchasing power while paper currencies devalue.