Gold hits pause on record run; but eyes eighth weekly gain

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.

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.