Gold rose on Friday as expectations for further interest rate cuts from the Federal Reserve and lingering concerns over the U.S. economic outlook amid a prolonged government shutdown buoyed demand.

Spot gold was up 0.8% at $4,010.72 per ounce, as of 0925 GMT. U.S. gold futures for December delivery gained 0.7% to $4,019.50 per ounce.

"The bull run is still in place," said independent analyst Ross Norman.

"The underlying themes attached to gold price strength remain very much in place, which is to say central bank gold buying and rate cut prospects"

The U.S. economy shed jobs in October amid losses in the government and retail sectors, while cost-cutting measures and the adoption of artificial intelligence by businesses led to a surge in announced layoffs, data showed on Thursday.

A weak jobs market typically makes rate cuts more likely.

Market participants now see a 67% chance of a Fed rate cut in December, up from close to 60% before the report. The Fed cut interest rates last week and Chair Jerome Powell suggested it might be the last reduction in borrowing costs for the year.

The focus is now on macro-economic numbers and when the U.S. shutdown is going to get over, which is also helping safe-haven demand for gold, said Soni Kumari, a commodity strategist with ANZ.

A congressional impasse has resulted in what is now the longest-ever U.S. government shutdown, which has forced investors and the data-dependent Fed to rely on private sector indicators.

Elsewhere, spot silver climbed 1.7% to $48.80 per ounce. Platinum rose 0.9% to $1,554.66 and palladium gained 1.5% to $1,395.50. However, both metals are headed for a weekly loss.