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Gold slips from three-week high as strong dollar weighs

Gold rates pulled away from a. threeweek high on Friday, pressed by a robust dollar, while. markets braced for prospective financial and trade shifts under. U.S. Presidentelect Donald Trump.

Spot gold alleviated 0.3% to $2,649.29 an ounce at 09:37. a.m. ET (1436 GMT), after hitting its highest level since Dec. 13. Bullion is up about 1.1% for the week so far.

U.S. gold futures were down 0.2% at $2,663.70.

The brand-new president's agenda that supports greater tariffs has. increased the dollar and produced significant hidden pressure. on metal markets, stated Nitesh Shah, product strategist at. WisdomTree.

The dollar index was set for its strongest weekly. performance because mid-November, making gold pricier for overseas. purchasers.

For the majority of the metals, the slowing down of global trade has. usually been coupled with a slowing economy and for that reason. slowing demand for metals, Shah said, referring to the. potential impact of Trump's proposed trade tariffs.

A headwind from a more powerful dollar is likely to persist. for gold, but it looks like debts will continue increasing in the. U.S. and other countries, and geopolitical problems aren't going. to end quickly, so it needs to remain supported, he included.

Trump is set to take the oath of workplace on Jan. 20. His. proposed tariffs and protectionist policies are expected to sustain. inflation.

This could slow the U.S. Federal Reserve's interest rate. cuts, limiting gold's benefit. After 3 rate cuts in 2024, the. Fed tasks only 2 decreases in 2025 due to consistent. inflation.

Gold, which thrives in low-rate environments, is presently. gaining from seasonal demand.

January has been consistently seeing the best rate gains. over the last 20 years as financiers and asset allocators open. fresh new long positions, paired, of course, with good. jewellery offtake for the joyful season, independent expert. Ross Norman stated.

Area silver rose 0.8% to $29.82 per ounce, platinum. included 1.4% to $937.65, and palladium got 1.4%. to $924.20.

(source: Reuters)