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PRECIOUS-Gold set for second straight weekly gain on softer US dollar

PRECIOUSGold set for second straight weekly gain on softer US dollar
PRECIOUS-Gold set for second straight weekly gain on softer US dollar

2023-11-24 10:30:07 - Source: Shafaq News

Shafaq News/ Gold prices edged higher on Friday and were on track for their second consecutive weekly gain, supported by a weaker U.S. dollar as markets grew confident that the Federal Reserve is done with its interest rate hikes.


* Spot gold was up 0.1% at $1,993.96 per ounce, as of 0123 GMT. Bullion has risen 0.7% so far this week.

* U.S. gold futures were also up 0.1% at $1,994.70.

* Trading is expected to be thin with U.S. markets closed on Thursday for Thanksgiving holiday and due for curtailed trading hours later in the day.

* The dollar index slipped 0.2% against its rivals and was on track for a second weekly drop, making gold less expensive for other currency holders. [USD/]

* Data on Wednesday showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, but that likely does not change the view that the labor market is slowing amid higher interest rates.

* Earlier this week, the Fed minutes showed the central bank would proceed "carefully" and that "all participants judged it appropriate to maintain" the current rate setting.

* Fed officials agreed they would only raise interest rates if progress in controlling inflation faltered.

* Traders widely expect the Fed to leave rates unchanged in December, while pricing in about a 26% chance of a rate cut as early as March, according to CME's FedWatch Tool.

* Lower interest rates decrease the opportunity cost of holding gold.

* Japan's core consumer price growth picked up slightly in October, after easing the previous month, reinforcing investors' views that stubborn inflation may push the Bank of Japan to roll back monetary stimulus before long.

* Spot silver gained 0.1% to $23.69 per ounce, platinum was flat at $915.43. Palladium rose 0.1% to $1,047.28 per ounce.


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