Investing.com – Gold prices fell late in the week on Friday, driven by a stronger US dollar, but still posted a weekly gain as a slight decline in the dollar provided support
fell 0.7% to $2,639.3 per ounce, while the February expiring value rose 0.6% to $2,653.4 per ounce at 15:15 ET (20:15 GMT).
Gold poised for weekly gains, strong dollar limits gains
The yellow metal is expected to rise almost 2% this week, its best weekly gain since November 17. It had dropped over the past two weeks.
Yields fell slightly by 0.3% on Friday, but remained near a two-year high reached last month. These 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 in early 2025 as the US Federal Reserve has only announced two interest rate cuts this year.
High interest rates tend to push gold prices lower because they increase the opportunity cost of holding non-yielding assets like gold, while making interest-bearing investments more attractive.
Other valuable stocks posted gains on Friday. rose 2.8% to $948.05 per ounce, while it rose 0.6% to $30.09 per ounce.
Copper remains under pressure as markets await new Chinese stimulus measures
Among industrial metals, copper prices were subdued by the strong dollar, while Chinese factory activity data released a day earlier provided no support.
grew in December, but at a slower-than-expected pace, data published Thursday showed.
The data shows that the impact of the recent stimulus measures is waning. Markets are waiting for more clarity on Beijing’s stimulus plans this year.
The People’s Bank of China said it will cut interest rates from the current level of 1.5% in 2025 “at an appropriate time,” the Financial Times reported on Friday.
The benchmark on the London Metal Exchange rose 1.1% to $8,900 a tonne, while February was 1.3% lower at $4.0777 a pound.
