NEW YORK: Gold prices were little changed on Friday as a stronger US dollar and rising Treasury yields dented demand for the non-yielding metal, though bullion was still set for a weekly gain.
Spot gold rose 0.1percent to USD4,338.37 an ounce as of 10:05 a.m. ET (1505 GMT), but was set to log a weekly gain of 0.9 percent. US gold futures also gained 0.1percent to USD4,370.10.
The US dollar climbed to a more than one-week high, making dollar-priced bullion costlier for overseas buyers. Benchmark 10-year US Treasury yields also edged higher.
“We’re seeing some reaction to a stronger US dollar, higher yields along the curve, and a slightly firmer risk appetite since yesterday,” said Bart Melek, global head of commodity strategy at TD Securities. “Markets are consolidating below recent highs after the Fed’s December 25-basis-point cut.”
Meanwhile, US consumer prices rose 2.7 percent year-on-year in November, below economists’ forecast of a 3.1 percent increase. Federal funds rate futures indicate 58 basis points of rate cuts by the Fed in 2026.
Spot silver added 1.5percent to USD66.38 an ounce, set to end the week 7.2 percent higher after hitting a record high of USD66.88 on Wednesday.
Silver has surged 128 percent this year, outpacing gold’s 65percent rise, supported by strong investment demand and supply constraints. “Silver is driven by investor interest in ETFs … there is a lot of interest in call options, prompting market makers to hedge the underlying, what we call a bit of a gamma squeeze here,” Melek added.
Meanwhile, gold discounts in India widened to a more than one-month high as record prices curbed wedding-season demand, while Chinese markdowns reached their steepest since late August 2020.
Platinum added 2.3 percent to USD1,960.41 after touching a more than 17-year high on Thursday. Palladium fell 0.1percent to USD1,693 after hitting a nearly three-year high earlier in the session. Both metals were set for weekly gains.
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