Emirates Voice – Gold prices rose on Friday, heading for a significant weekly gain. This comes as the US dollar weakens. Investors are awaiting further US economic data to assess the likelihood of an interest rate cut by the Federal Reserve in December.
Price movement details
Spot gold: The price of gold in spot trading rose 0.3% to $4,183.31 per ounce by 06:38 GMT. The precious metal has recorded a weekly gain of 4.6% so far.
Futures: US gold futures for December delivery were trading at $4185.90 an ounce.
The dollar and its upward catalysts
The dollar index, which measures the performance of the US currency against a basket of rival currencies, is headed for its second consecutive weekly decline. This weakening dollar makes gold—which is priced in dollars—more attractive to holders of other currencies.
In a comment, Brian Lan, general manager of GoldSilver Central, said: “Gold has performed well this week. This is mainly due to the somewhat weak dollar, amid markets waiting for the Federal Reserve to cut interest rates.”
Interest rate forecasts
Although the Federal Reserve cut interest rates by 25 basis points last month, its chairman, Jerome Powell, urged caution before implementing another cut. This could happen at the end of 2025.
Currently, 51% of market participants expect a quarter-point interest rate cut next month (December 2025). This represents a decline from 64% in the previous session, indicating a more cautious and watchful stance among investors regarding the upcoming monetary policy decision.
