Gold prices slipped during European trading on Friday, retreating from a three-week high reached earlier in the Asian session due to profit-taking activities.
Despite the decline, the precious metal is on track to record its largest weekly gain since November, supported by safe-haven demand as investors anticipate potential economic changes under the incoming administration of US President-elect Donald Trump.
Market Performance
Gold prices (XAUUSD) fell 0.3% to $2,649 per ounce, pulling back from December 13 highs of $2,665. On Thursday, the metal rose 1.25%, marking its second consecutive session of gains as US Treasury yields declined.
Weekly Trends
For the week, gold prices rose by 1.1%, poised for their first weekly gain in three weeks and the largest increase since November.
Impact of Trump’s Policies
With Donald Trump’s inauguration nearing, market uncertainty has grown as investors brace for potential inflationary pressures tied to his tariff and protectionist policies. Such measures are anticipated to heighten the risk of trade conflicts, which could influence global markets.
US Interest Rates
According to the FedWatch Tool, the probability of a 0.25% interest rate cut by the Federal Reserve in January stands at just 11%. Investors are now awaiting the release of key US manufacturing data later today, along with remarks from multiple Federal Reserve officials, which could provide further economic insights.
SPDR Gold Trust
Gold holdings in the SPDR Gold Trust, the largest gold-backed exchange-traded fund, remained steady at 872.80 tons as of Thursday.
