Investing.com – Gold prices rose in Asian trading on Friday, on track for a weekly gain, as a slight decline in the dollar provided support, although the greenback remained near its peak two years, maintaining the pressure on the bullion.
The gold price rose 0.2% to $2,662.94 an ounce, while the February expiry gained 0.3% to $2,677.70 an ounce as of 00:05 ET (05:05 GMT).
Gold Poised for Weekly Gain, Strong Dollar Limits Gains
The yellow metal is expected to gain nearly 2% this week, its best weekly gain since November 17. It has declined over the previous two weeks.
The fell 0.2% in Asia on Friday but remained near its two-year high reached last month.
A weaker dollar generally pushes up gold prices because it makes the metal cheaper for buyers using other currencies.
Markets are cautious at the start of 2025, with the US Federal Reserve having only announced two new interest rate cuts this year.
High interest rates generally lower the price of gold because they increase the opportunity cost of holding non-yielding assets like gold, while making interest-bearing investments more attractive.
Other precious metals rose on Friday. The rose 0.5% to $929.70 an ounce, while the gained 0.4% to $30.30 an ounce.
