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.
“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