Gold prices remained flat on Friday near their lowest levels in two months, as a strengthening U.S. dollar and reduced expectations for aggressive Federal Reserve rate cuts pressured the metal. Spot gold stood at $2,566.09 per ounce at 0943 GMT, while U.S. gold futures held at $2,570.80.
The metal has fallen over 4% this week, marking its worst weekly performance in over three years. The dollar, poised for its strongest week in more than a month, continued to exert downward pressure on gold, which becomes less attractive as interest rates and inflation expectations rise.
Kinesis Money analyst Carlo Alberto De Casa noted that while Trump’s economic policies have so far been bearish for gold, potential medium-term uncertainty could shift sentiment back in favor of the safe-haven asset.
Fed Chair Jerome Powell’s comments on Thursday, emphasizing no urgency to lower rates, further solidified market expectations of limited rate cuts. The CME FedWatch tool shows a reduced probability (59%) of a December rate cut, down from 83% a day earlier.
Other Precious Metals Performance
- Silver: Down 0.4% to $30.35 per ounce, heading for a weekly decline.
- Platinum: Gained 0.8% to $946.99 but still set for a weekly loss.
- Palladium: Rose 1.8% to $958.42 yet also poised for a weekly drop.
Investors await U.S. retail sales data and speeches from Federal Reserve officials for further cues on economic conditions.
