Gold falls

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Gold prices fell on Friday, but eked out a weekly rise as the Federal Reserve shifted to a dovish stance and projected lower interest rates next year.

Spot gold fell 0.8 percent to $2,019.91 per ounce but gained 0.8 percent for the week. US gold futures settled 0.4 percent lower at $2,035.70.

“The gold market will continue to mirror what the expectations from the Fed are,” said Everett Millman, chief market analyst at Gainesville Coins.

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“If the US economy does not improve early in 2024 then that’s a very strong sign that gold will continue to push near an all-time high.”

Earlier in the week, Fed Chair Jerome Powell said the prolonged tightening of monetary policy is likely over as a discussion of lower borrowing costs comes “into view”, an outlook affirmed by 17 of 19 policymakers.

Markets are seeing a 70 percent chance of a rate cut in March, CME FedWatch tool showed. – Reuters

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