Gold prices held steady on Friday, hitting their biggest weekly gain in four as the dollar and Treasury yields weakened amid growing expectations that the US Federal Reserve is done with its monetary policy tightening.
Spot gold was steady at $1,980.20 per ounce after rising to a two-week high earlier in the session. Prices were up about 2.2 percent so far this week.
US gold futures settled down 0.1 percent at $1,984.70.
“There is a strong potential for gold to continue to rally a bit more but prices have to move a bit lower, before the next leg-up in the rally and perhaps test the $2,000 level at the same time,” said Everett Millman, chief market analyst at Gainesville Coins.
“Data that came out this week cemented the fact that the Fed is likely done with rate hikes, helping gold. Gold’s move will depend on incoming data and market response to the data.”
This week’s data revealed the US consumer price index was unchanged in October and another set of data highlighted that the number of Americans filing new claims for unemployment benefits increased more than expected last week. – Reuters
