Gold prices were going nowhere on Friday but headed for a second week of gains, as some weak U.S. economic data fanned expectations that the Federal Reserve might ease the aggressive pace of raising interest rates beginning in December.
Spot gold was flat at $1,663.22 U.S. per ounce early Friday but was up 0.4% for the week so far.
U.S. gold futures were unchanged at $1,666.00.
The U.S. economy rebounded strongly in the third quarter amid a shrinking trade deficit, but the data overstated the nation’s economic health as domestic demand was the weakest in two years.
The Fed is widely expected to announce another 75 basis-point rate increase at its meeting next week, although the central bank is seen slowing its aggressive pace in December.
U.S. rate hikes increase the opportunity cost of holding zero-yielding bullion, while boosting the dollar, in which it is priced.
Spot silver eased 0.2% to $19.54 U.S. per ounce, platinum rose 0.2% to $962.03 U.S. and palladium gained 0.5% to $1,951.07 U.S.
