Gold prices extend gains to achieve weekly gains

Gold prices continued to rise on Friday and were heading to record their first weekly gains in three weeks, amid increasing investor bets that the Federal Reserve (the US central bank) had reached the end of its monetary tightening cycle, putting pressure on the dollar and Treasury bond yields.

According to Reuters, gold rose in spot transactions by 0.2% by 0255 GMT to $1,984.48 per ounce, after recording its highest levels since November 6 in the previous session. US gold futures settled at $1,987.20

The precious metal has recorded gains of 2.5% so far this week

Recently published data showed that the consumer price index in the United States remained unchanged in October and that the core rate rose 0.2%, which is less than expected, while producer prices witnessed the largest decline in three and a half years.

Low interest rates reduce the opportunity cost of owning gold, which does not generate returns and is used as a hedge against inflation.

As for other precious metals, silver rose 0.4% to $23.8 per ounce, bringing its rise this week to 7.2%, and platinum settled at $892.65, but rose 6.4% during the week. Palladium also settled at $1,037.46 per ounce, but it is heading for its best weekly performance in a year.