Gold prices rose on Friday, helped by a slight decline in the U.S. dollar and growing geopolitical tensions, but remained on track for a weekly decline as markets awaited key U.S. data to learn more about the direction of the Federal Reserve's monetary policy.
Spot gold rose 0.7% to $2,660.03 an ounce, by 0236 GMT. However, bullion is down 2% since the start of the week.
U.S. gold futures gained 0.8% to $2,659.70.
The dollar index fell by 0.2, increasing the attractiveness of gold for holders of other currencies. [USD/]
Escalating geopolitical tensions are prompting investors to turn to gold in hopes of capitalizing on potential price rises, said Brian Lan, chief executive of Singapore-based broker GoldSilver Central, adding that “the slight weakening dollar helped gold prices rise.
The Israeli military said its air force struck a facility used by Hezbollah to store medium-range rockets in southern Lebanon on Thursday, as both sides accuse each other of violating the ceasefire. -fire.
Additionally, Russia on Thursday launched its second major attack on Ukraine's energy infrastructure this month, causing major power outages across the country.
Bullion is traditionally considered a safe investment during economic and geopolitical uncertainties, such as conventional or trade wars.
Gold prices could test or dip below the key $2,600 level, with the metal likely remaining in a consolidation phase through December, Lan added.
Markets are pricing in a 66.5% chance of a 25 basis point rate cut by the Federal Reserve in December, according to the CME's Fedwatch tool, which could mark the third cut of 2024.
Key U.S. data released next week, including job openings, the ADP employment report and the employment report, are expected to provide some guidance on the Fed's rate cut prospects.
Spot silver rose 1.1 percent to $30.58 an ounce, platinum gained 0.9 percent to $939.75 and palladium rose 0.9 percent to $984.25. All three metals were poised for weekly declines.
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