Gold Heading for Weekly Gains Amid Hopes of Interest Rate Halt in the U.S.

Gold prices continued to rise on Friday and are set to record their first weekly gains in three weeks, amid increasing bets among investors that the Federal Reserve has reached the end of its tightening cycle, putting pressure on the dollar and Treasury yields. Spot gold climbed 0.2% to $1984.48 per ounce by 02:55 GMT after hitting its highest level since November 6 in the previous session. U.S. gold futures steadied at $1987.20. The precious metal has gained 2.5% so far this week. Recent data showed that the Consumer Price Index in the U.S. remained unchanged in October, with the core rate rising by 0.2%, below expectations, while producer prices saw their largest drop in three and a half years. The decline in interest rates reduces the opportunity cost of holding gold, which does not yield returns and is used as a hedge against inflation. The dollar is on track for a weekly decline, making gold less expensive for buyers holding other currencies. Regarding other precious metals, silver rose 0.4% to $23.8 per ounce, bringing its weekly gains to 7.2%. Platinum remained at $892.65 but increased by 6.4% during the week. Palladium steadied at $1037.46 per ounce, heading for its best weekly performance in a year.