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Gold records first weekly gain in three weeks

Gold records first weekly gain in three weeks
Gold records first weekly gain in three weeks

2023-11-17 09:15:05 - Source: Shafaq News

Shafaq News / Gold prices extended their rise on Friday and were set to log their first weekly gain in three, as investors stepped-up bets that the U.S. Federal Reserve is done raising interest rates, pressuring the dollar and Treasury yields.

Spot gold XAU= was up 0.2% at $1,984.48 per ounce, as of 0255 GMT, after hitting its highest since Nov. 6 in the last session. U.S. gold futures GCcv1 were steady at $1,987.20.

The bullion is up 2.5% so far this week.

"There's probably a couple of set of sequences in which we could see gold push sustainably through $2,000, and that's a very rapid deterioration in the data, which suggests that again, rate cuts on the horizon," said Kyle Rodda, a financial market analyst at

Data this week showed the U.S. consumer price index was unchanged in October and the core rate was up 0.2%, weaker than anticipated. Producer prices fell by the most in three-and-a-half years.

Market participants revised their forecasts for future Fed action. FEDWATCH

Lower interest rates decrease the opportunity cost of holding gold, a non-yielding bullion used as a hedge against inflation.

Meanwhile, the number of Americans filing new claims for unemployment benefits increased more than expected last week, which could help the Fed's fight against inflation.

The dollar =USD was on track for a weekly drop, making gold less expensive for buyers holding other currencies, while yields on 10-year Treasury notes US10YT=RR hovered near two-month lows. USD/

Spot silver XAG= rose 0.4% to $23.8 per ounce and up 7.2% for the week so far, while platinum XPT= was flat at $892.65, but has gained 6.4% for the week.

Palladium XPD= was also steady at $1,037.46 per ounce, but was heading for its best week in a year.


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