Gold prices climbed on Friday to their highest level in nearly three weeks as rising bets on Federal Reserve interest rate cuts early next year pushed the dollar and bond yields lower ahead of much awaited U.S. inflation data.
Spot gold was up 0.2% at $2,048.99 U.S. per ounce, after hitting its highest since Dec. 4 earlier in the session. Bullion has risen 1.5% so far this week.
U.S. gold futures rose 0.5% to $2,060.50 per ounce.
Fed officials have been pushing back against the idea of rapid rate cuts next year, but these remarks have done little to change investor sentiment.
All eyes are now on the November core personal consumption expenditure price index report, the Fed’s preferred measure of underlying inflation, due at 8:30 EST, for more clarity on the U.S. rate outlook.
Market participants expect the index to have risen 3.3% on an annual basis, compared to October’s 3.5%.
Silver fell 0.1% to $24.38 per ounce. Platinum eased 0.1% to $962.28 and palladium lost 0.6% to $1,206.12. All three metals were on track for their second consecutive weekly gain.
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