Gold prices rose on Friday due to a softer dollar and Treasury yields, following U.S. economic data showing a slowdown in inflation. Spot gold was up 1.2% at $2,624.15 per ounce, while U.S. gold futures settled 1.4% at $2,645.10.
The dollar fell 0.6% from its two-year high, making gold less expensive for overseas buyers. The personal consumption expenditures price index rose 0.1% last month after an unrevised 0.2% gain in October.
Bullion is down 0.9% this week, as the Fed’s “dot plot” showed only two 25-bps rate cuts by 2025, signaling less easing than projected in September.
Higher interest rates increase the opportunity cost of holding gold, which does not yield any interest. Spot silver rose 1.8% to $29.54 per ounce, platinum gained 0.5% to $928.34, and palladium climbed 1.5% to $919.56.
