Gold prices firmed on Friday (Jan 17) and were headed for a third straight week of gains after US data this week hinted that the Federal Reserve might continue easing interest rates this year.
Spot gold was flat at US$2,715.21 per ounce as at 0047 GMT, hovering near a more than one-month peak hit on Thursday. Bullion has gained about 1 per cent so far this week.
US gold futures dropped 0.1 per cent to US$2,747.50.
Fed governor Christopher Waller said three or four rate cuts are still possible this year if US economic data further weakens.
The Fed’s rate-cut hopes increased after the CPI data on Wednesday. The central bank is expected to hold the benchmark rate steady in the current 4.25 to 4.5 per cent range at its policy meeting on Jan 28 to 29.
Gold is used as an inflation hedge but higher interest rates dampen its appeal.
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A barrage of US data, including retail sales and initial jobless claims, also weighed on Treasury yields and the US dollar, supporting gold.
US inflation data for December 2024 indicates price pressures are continuing to ease, Richmond Fed president Thomas Barkin said.
However, concerns linger around the incoming Donald Trump administration’s potential tariffs, which could further stoke inflation.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.43 per cent to 868.78 tonnes on Thursday from 872.52 tonnes on Wednesday.
Spot silver rose 0.1 per cent to US$30.82 per ounce, adding over 1 per cent for the week.
Palladium eased 0.1 per cent to US$937.25 and platinum shed 0.1 per cent to US$931.85. Both were headed for weekly losses. REUTERS
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