Khaberni - Gold prices stabilized near a seven-week high on Friday, supported by the expectation of further rate cuts next year after the Federal Reserve (the US central bank) defied market expectations of monetary tightening, while silver hovered near the record peak it registered yesterday.
Gold fell 0.2% in spot transactions to $4,275.44 an ounce by 02:36 GMT, but it is heading towards a 1.8% weekly gain after recording its highest level since October 21 last Thursday.
The US futures contracts for gold fell 0.2% to $4,306.20.
The dollar is heading towards its third consecutive weekly decline, making the precious metal cheaper for buyers holding other currencies.
The Federal Reserve issued on Wednesday, amid a state of division, its third decision this year to cut the interest rate by 25 basis points, and investors saw its statement and comments by its chairman Jerome Powell as less inclined towards monetary tightening, with officials indicating that any further cuts would be based on clearer signs of easing inflation and a slowdown in the job market.
As for other precious metals, silver in spot transactions rose 0.4% to $63.84 an ounce, after recording a record level at $64.31 last Thursday, and it is heading towards recording weekly gains of 9.2%.
The price of silver has more than doubled this year, supported by strong industrial demand and declining inventories, and it being listed on the critical minerals list in the United States.
Platinum increased 0.2% to $1,698.45, while palladium surged 1.9% to $1,512.0. Both are heading towards recording a weekly rise.
