Gold prices rose on Friday, to a two-week high and are heading for their first weekly gain in 3 weeks, amid growing investor bets that the US Federal Reserve has reached the end of the monetary tightening cycle, putting pressure on the dollar and Treasury bond yields.
Gold in spot transactions rose 0.4% to 1988.90 dollars per ounce after it recorded its highest levels since November 3 at 1993.29 dollars, and prices rose 2.7% during the week, according to CNBC Arabia, and US gold futures contracts increased 0.3% to 1992.30 dollars.
Market participants expect interest rates to be cut by next May after data indicated a slowdown in inflation, and recently published data showed that the Consumer Price Index in the United States was unchanged in October and that the base rate rose 0.2%, which is less than expected, while producer prices experienced the largest decline in 3 and a half years.
Low interest rates reduce the opportunity cost of holding non-yielding gold, which is used as a hedge against inflation.
The dollar is heading for a weekly decline, which makes gold less expensive for buyers than holders of other currencies, and yields on 10-year Treasury bonds have fallen.
Silver rose 1.4% to 24.02 dollars per ounce, reaching its highs this week to 8.2%, platinum climbed 1.3% to 903.74 dollars to continue its gains by 7.7% during the week, and palladium increased 1.7% to 1055.68 dollars per ounce, heading for its best weekly performance in a year.
