Gold edged higher on Friday on a weaker U.S. dollar and safe-haven flows, with the metal on course for a weekly gain as attention turns to proposed policy changes by U.S. President-elect Donald Trump that could influence the economic and interest rate outlook going forward.
Spot gold was up 0.2% at $2,661.19 an ounce, at 0257 GMT, hitting its highest level since December 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 fell 0.2%, making dollar bullion more affordable for holders of other currencies.
“We have seen an increase in safe-haven flows, which has benefited gold,” said Tim Waterer, chief market analyst at KCM Trade.
“Any decline in the US dollar could prove to be a catalyst for gold to move higher again.
Mr. Trump's inauguration on January 20 has heightened uncertainty, with his proposed tariffs and protectionist policies likely to be inflationary and trigger trade wars.
Geopolitically, Israeli airstrikes have killed at least 68 Palestinians in Gaza.
Additionally, Russia launched a drone attack on the Ukrainian capital, kyiv, on Wednesday, causing damage to at least two neighborhoods.
Gold thrives in low interest rate environments and serves as a hedge against economic and geopolitical uncertainties.
Last month, the US central bank made a third consecutive rate cut, but it only plans two further reductions in 2025.
Markets are now awaiting data on US job openings, the ADP employment report, the Fed meeting minutes and the employment report, all due next week, to orient.
“Global trends will continue to play an important role and drive the gold market forward. The metal will gradually rise, showing stable growth values throughout the year,” said Julia Khandoshko, CEO of the company brokerage Mind Money.
Spot silver was steady at $29.58 an ounce, platinum gained 0.4% to $926.95 and palladium rose 0.2% to $913.18. All three metals are poised for weekly gains.
