Gold set for second weekly gain as inflation risks boost appeal

Gold was set to gain for a second week as inflation and geopolitical risks lifted its safe-haven appeal but it slipped on Friday amid a broader decline in commodities, while palladium was on course for its best week since November 2020.

Spot gold was down 0.4% at $1,831.60 per ounce as of 13:43 ET (1843 GMT). U.S. gold futures settled down 0.6% at $1,831.80, Reuters Reported.

Silver fell 0.6% to $24.28, but was set for its best week since early May 2021, up about 5.8%.

Market focus is now on the U.S. Federal Reserve’s meeting on Jan. 25-26, and economists polled by Reuters expect the central bank to tighten policy at a much faster pace than thought a month ago to tame persistently high inflation.