Gold steady but on track for weekly loss

Gold bars

Gold prices held firm on Friday but are heading for a weekly loss on bets for slower Fed easing and the recent rise in dollar.

The yellow metal futures for December delivery settled at $2,572.50 per ounce as of 11:57 am KSA time, showing a weekly decline of about 4.5%.

Meanwhile, spot gold remained steady at $2,567.25 per ounce but are heading for a 4% weekly loss, the steepest in more than three years.

Silver futures for December delivery fell by 0.16% to $30.52 per ounce, while spot platinum prices rose by 0.83% to $948.73 per ounce.

Federal Reserve Chair Jerome Powell stated in a speech on Nov. 14 that the strong performance of the US economy, coupled with inflation nearing the 2% target, would allow policymakers to proceed cautiously with rate cuts.

These comments reduced the likelihood of a 25-basis-point rate cut at the December meeting to 62.4%, down from 82.5% the day before, while the probability of holding rates steady rose to 37.6% from 17.5%, according to the CME FedWatch.

The dollar index, which measures the value of the greenback against a basket of six major currencies, fell by 0.13% to 106.53 points during trading. However, it remains at its highest level since Oct. 22, 2023, as the stronger dollar increases the cost of purchasing gold in other currencies.