Gold prices inched down, on track for a weekly gain
Shafaq News / Gold prices inched down on Friday but stayed on track for a weekly gain, as prospects of the U.S. Federal Reserve lowering borrowing costs dented the dollar and Treasury yields, boosting demand for the safe-haven asset.
Spot gold XAU= was down 0.1% at $2,033.29 per ounce, as of 0113 GMT. However, bullion has risen 1.5% so far this week. U.S. gold futures GCcv1 edged 0.1% higher to $2,047.60.
The Fed left interest rates unchanged on Wednesday and Chair Jerome Powell said the historic tightening of monetary policy is likely over, with a discussion of cuts in borrowing costs coming "into view".
Fed officials estimated 75 basis points (bps) of rate cuts in 2024, with 2.4% inflation at the end of next year. Markets are now pricing in around a 75% chance of a rate cut in March, according to CME FedWatch tool.
Lower U.S. interest rates put pressure on the dollar and bond yields, and increase the appeal of non-yielding bullion.
The dollar =USD was heading for a weekly drop after hitting a four-month low on Thursday, making gold less expensive for other currency holders.
Benchmark U.S. 10-year bond yield US10YT=RR, meanwhile, hovered near its lowest level since July.
(Reuters)
