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    • Gold fell to its worst week in the last 3 years, while the dollar rose
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    Gold fell to its worst week in the last 3 years, while the dollar rose

    Harry Posted on

    Rahul Paswan
    | Reuters

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    Gold prices steadied near two-month lows from the previous session on Friday and are poised for their worst weekly performance in more than three years as a strengthening U.S. dollar and expectations of less aggressive Fed rate cuts weigh on the precious metal.

    Spot gold XAU= was little changed at $2,568.37 per ounce as of 12:15 GMT. Prices have fallen more than 4% so far this week, reaching their lowest level since September 12 on Thursday. US gold futures GCv1 were also flat at $2,573.00.

    Kinesis Money market analyst Carlo Alberto De Casa said, “Gold has been negatively affected by Trump’s election so far, but this may change if there is some more uncertainty that may return in the medium term,” and added that Trump’s policies are guiding investors. We expect higher inflation and interest rates in the US.

    “Generally, markets are betting that the US dollar will be stronger, which is a bearish market driver for gold.”

    Dollar .DXY is poised for its best week in more than a month. USD/

    More: Gold fell to its lowest level in 2 months as the dollar strengthened; Focus on US data

    Economists believe President-elect Donald Trump’s tariff plans will increase inflation and potentially slow the Fed’s rate-cutting cycle. High interest rates make holding gold less attractive because investors can earn higher returns from other assets.

    There is no need for the U.S. central bank to rush to cut interest rates, Fed Chairman Jerome Powell said on Thursday, which he said could signal borrowing costs for both households and businesses will remain high for longer.

    According to the CME Fedwatch tool, markets reduced the probability of a 25 basis point interest rate cut in December to 62% from 83% the previous day.

    US retail sales data will be released at 13:30 ET and several Federal Reserve officials are scheduled to speak later.

    Spot silver XAG= rose 0.6% to $30.64 per ounce, platinum All three metals were on track for a weekly decline.

    Spot gold price in USD per ounce https://reut.rs/4euEL2I

    Report from Rahul Paswan in Bengaluru; Edited by Kirsten Donovan and Elaine Hardcastle

    Harry
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