Gold heads for its best weekly performance in 5 months

On Friday, gold prices are poised to achieve their largest weekly jump in five months and are hovering near their highest level ever after statements by the Chairman of the Federal Reserve (US Central Bank) reinforced bets on lowering interest rates in the middle of the year.

According to Reuters, there was no significant change in gold prices in spot transactions, recording $2,157.16 per ounce by 0350 GMT, remaining close to the record level recorded in the previous session at $2,164.09. US gold futures also settled at $2,164.40.

Prices in spot transactions have risen by more than 3.5% since the beginning of the week until now, and are on track to record the largest weekly percentage increase since mid-October in the early days of the conflict between Israel and Hamas. This will also be the third week in a row that prices have risen.

Powell said that the central bank is “not far away” from gaining sufficient confidence that inflation is declining, paving the way for it to begin lowering interest rates. This is likely to happen in the coming months, he said. Low interest rates enhance the attractiveness of the precious metal, which does not generate returns.

The dollar is on track to record its largest weekly decline this year, making gold less expensive for buyers in other currencies. The market’s focus is on key US jobs data scheduled for release at 1330 GMT.