Gold Price News: Gold Gains For Fourth Day As Dollar Weakens

Gold prices ticked higher on Friday, building on a modest recovery seen through the week after sharp falls on Monday.

Prices edged up to an intraday high of $2,667 an ounce on Friday, compared with around $2,639 an ounce in late trades on Thursday.

Gold prices were supported by currency effects through the week as the US dollar weakened against other major currencies, making dollar-denominated gold cheaper for buyers in other currencies.

Prices go into Monday on the back foot, edging down to around $2,630 an ounce.

Gold prices seen down 2.4% week-on-week

The slight uptick for gold prices on Friday added to modest gains seen from Tuesday through Thursday, with the market showing some signs of stability after a sharp fall on Monday. Prices came off their earlier highs to trade at around $2,650 an ounce by Friday evening. Overall, gold prices were down by around 2.4% on a week-on-week basis.

Elsewhere, Euro Area inflation figures came out on Friday, showing a drop of 0.3% in November, reversing a 0.3% rise in October. The inflation rate itself came out at 2.3% in November on a year-on-year basis, showing that inflation is close to the ECB’s target, providing leeway to reduce interest rates further.

Upcoming events

Looking ahead, Monday will see the release of the US ISM manufacturing PMI figures for November, for the latest update on the US industrial sector, followed by the JOLTs job openings for October on Tuesday. Beyond this, Wednesday will bring US ISM services PMI figures for November and a speech by US Fed Chair Jerome Powell after the European markets have closed. Trading data indicate that the markets are assigning a 66% probability that the US Fed will cut interest rates by 25 basis points at its next meeting on December 18^th.