Gold Set for Weekly Rise; Market Awaits Trump's Policy Moves
Gold edged up on Friday on a softer U.S. dollar and safe haven flows, with the metal en-route for a weekly gain as attention turned to U.S. President-elect Donald Trump's proposed policy changes that could influence the economic and interest rate outlook going forward.
Spot gold was up 0.2% at $2,661.19 per ounce, as of 0257 GMT, hitting its highest level since Dec. 13. Bullion is up about 1.6% for the week so far.
U.S. gold futures rose 0.2% to $2,675.40.
The dollar index DXY fell 0.2%, making dollar-priced bullion more affordable for holders of other currencies.
"We have seen an uptick in safe haven flows, which has been to the benefit of gold," said Tim Waterer, chief market analyst at KCM Trade.
"Any pullback in the U.S. dollar could prove to be a catalyst for gold to breakout higher."
Trump's inauguration on Jan. 20 has heightened uncertainty, with his proposed tariffs and protectionist policies expected to be inflationary and potentially spark trade wars.
On the geopolitical front, Israeli airstrikes killed at least 68 Palestinians in Gaza.
Additionally, Russia launched a drone strike on the Ukrainian capital Kyiv on Wednesday, causing damage in at least two districts.
Gold flourishes in low interest rate environments and serves as a hedge against economic and geopolitical uncertainties.
Source : Reuters
