Gold Steady After Fed Rate Adjustment Bets
Gold traded near a one-month high after rallying in recent sessions on renewed hopes for a U.S. interest rate cut this year.
Bullion held above $2,700 an ounce on Friday and was on track for a third weekly gain after weaker-than-expected U.S. inflation data prompted investors to restart bets on further Federal Reserve easing this year. Spot gold has risen more than 3% in 2025.
The U.S. central bank could cut rates again in the first half of 2025 if inflation continues to be favorable, Federal Reserve Governor Christopher Waller said Thursday in an appearance on CNBC. He also said a cut in March could not be ruled out.
Gold hit a series of record highs last year as the Fed pivoted to rate cuts, global central banks bought the precious metal and rising tensions boosted safe-haven demand. The precious metal is set to climb to a new peak later this year on trade and geopolitical uncertainty, UBS Group AG said this week.
Spot gold was steady at $2,714.19 an ounce at 10:04 a.m. in Singapore, up 0.9% for the week. The Bloomberg Dollar Spot Index was little changed. Silver, which also hit a one-month high on Thursday, was flat, as were platinum and palladium.
Source: Bloomberg
