Sharjah 24 – Reuters: Gold prices edged higher on Friday, heading for a weekly gain, supported by reports that China, the world's largest gold consumer, has resumed purchases, alongside growing expectations that the Federal Reserve will cut interest rates at its upcoming meeting on December 17-18.
Spot gold rose 0.1% to $2,684.87 per ounce by 0723 GMT, on track for a weekly gain of over 2%. Meanwhile, U.S. gold futures were slightly lower at $2,706.40.
Traders are focused on the Federal Reserve’s rate decision, with market expectations now at 96.4% for a 25 basis point rate cut, according to CME Group’s FedWatch tool.
Gold prices dipped 1% on Thursday due to profit-taking after hitting a five-week high earlier in the session. Economic data showed U.S. producer prices rose more than expected in November, driven by higher food costs, while consumer prices saw their largest gain in seven months, fueling speculation for rate cuts.
In other precious metals, silver rose 0.2% to $30.91 per ounce, platinum gained 0.6% to $935.55, and palladium held steady at $970.36, with all metals on track for weekly gains.
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