Shafaq News

Gold eased on Friday as lower-than-expected U.S. inflation print reduced bullion's appeal as a hedge against price rises, while a firmer dollar also weighed.

Spot gold fell 0.1% to $4,328.24 an ounce as of 0615 GMT, but was set to end the week 0.6% higher. U.S. gold futures fell 0.2% to $4,356.80.

Spot silver added 0.8% to $65.93 an ounce, appearing poised to end the week 6% higher after scaling an all-time peak of $66.88 on Wednesday.

Silver has gained 128% year-to-date, outpacing gold, which has logged a 65% annual rise so far this year.

The dollar held steady near one-week highs, making greenback-priced precious metals more expensive for other currency holders.

"The softer inflation print was a bit of a double-edged sword (for gold and silver), in that it helps justify a dovish trajectory from the Fed, but it also means that they lose some of their appeal as an inflation hedge," KCM Trade Chief Market Analyst Tim Waterer.

"The dollar standing its ground, is also creating some resistance."

U.S. consumer prices rose 2.7% year-on-year in November, falling short of the 3.1% climb estimated by economists polled by Reuters.

Federal funds rate futures indicated a slightly increased chance of the Fed trimming rates at its January meeting, after the data.

Goldman Sachs sees gold prices climbing 14% to $4,900/oz by December 2026 in its base case, the brokerage said in a note on Thursday, while citing upside risks to this view due to a potential broadening of diversification to private investors.

"Precious metals are in vogue, with platinum and palladium now getting in on the act and following in gold and silver's footsteps," Waterer added.

Platinum rose 1.1% to $1,937.20 after touching a more than 17-year high on Thursday. Palladium gained 0.6% to $1,706.20 after hitting a nearly three-year high earlier in the session.

Both were set for weekly gains, with palladium on track for its best week since September 2024.

(Reuters)

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