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Gold slips, but set for weekly increase on prospective Fed rate cut

Gold rates fell on Friday after bullion hit a more than fiveweek high in the previous session and as the U.S. dollar got, but rates were on track for a. weekly increase on expectations of a Federal Reserve rate cut next. week.

Area gold was down 0.8% at $2,658.89 per ounce at. 10:15 a.m. ET (1515 GMT), as the U.S. dollar hovered near its. highest in more than two weeks.

Bullion struck its greatest given that Nov. 6 on Thursday, and has. risen nearly 1% so far for the week.

U.S. gold futures fell 1.1% to $2,678.50.

Gold had an explosive year and we're entering the tail. end of the year which might see some unwinding going into the. last couple of weeks, however I think that's going to be brief and. think that gold is going to continue to move much greater,. said Daniel Pavilonis, senior market strategist at RJO Futures.

Underpinned by reducing monetary policies, robust reserve bank. purchasing, and safe-haven need, gold has shattered numerous. record peaks this year.

Traders now see a 97% opportunity of a 25 basis point rate cut at. the Fed's Dec. 17-18 conference.

The focus will also be on Chair Jerome Powell's commentary. as market individuals analyse U.S monetary policy for 2025,. especially in the light of President-elect Donald Trump's tariff. plan which economic experts say would stoke additional inflation.

Central banks usually keep rates of interest elevated to suppress. inflation, which in turn increases the opportunity cost of. holding non-yielding bullion.

Typically speaking, we see a more powerful U.S. economy next. year, which should leave less space for rate cuts and ought to hence. bring less tailwinds for gold, stated Carsten Menke, an expert. at Julius Baer.

Area silver fell 1.7% to $30.42 per ounce. Platinum. lost 1.1% to $919.85, while palladium shed 1.3% to. $ 957.35. All 3 metals were set for weekly losses.

(source: Reuters)