Investing.com– Gold prices inched higher in Asian trading on Friday, on track for a weekly gain as a slight pullback in the dollar provided support, though the greenback remained close to its two-year peak, keeping pressure on bullion.
rose 0.2% to $2,662.94 per ounce, while expiring in February gained 0.3% to $2,677.70 an ounce by 00:05 ET (05:05 GMT).
Gold set for weekly gain, strong dollar limits gains
The yellow metal was set to gain nearly 2% this week, its best weekly gain since November 17. It had declined in the previous two weeks.
The fell 0.2% in Asia hours on Friday but remained near a two-year high it hit last month. The were also lower.
A weaker dollar typically drives gold prices higher because it makes the metal cheaper for buyers using other currencies.
Markets are cautious at the start of 2025, as the U.S. Federal Reserve has signaled only two more interest rate cuts this year.
High interest rates typically pressure gold prices lower, as they increase the opportunity cost of holding non-yielding assets like gold while making interest-bearing investments more attractive.
Other precious saw gains on Friday. rose 0.5% $929.70 an ounce, while gained 0.4% to $30.30 an ounce.
Copper remains under pressure, markets await fresh China stimulus
Among industrial metals, copper prices were subdued as a strong dollar weighed, while Chinese factory activity data released a day earlier failed to provide support.
grew in December but at a slower-than-anticipated pace, data released on Thursday showed.
The data suggests that the impact of recent stimulus measures is waning. Markets are holding out for more clarity on Beijing’s plans for stimulus measures this year.
The People’s Bank of China said it will cut interest rates from the current level of 1.5% “at an appropriate time” in 2025, the Financial Times reported on Friday.
Benchmark on the London Metal Exchange inched 0.2% higher to $8,815.50 a ton, while February were 0.2% lower at $4.0260 a pound.
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