Gold…a slight decline and a trend for weekly gains

Gold prices recorded a slight decline today, amid weak trading, but they are heading to record weekly gains as markets await indicators about the trends of the US economy under the administration of the next President Donald Trump and the strategy of the Federal Reserve (the US central bank) regarding interest rates in 2025.

Gold in spot transactions fell 0.2 percent to $2,630.28 per ounce by 0221 GMT. The precious metal rose 0.3 percent from the beginning of the week until now.

US gold futures also fell 0.2 percent to $2,649.10.

Yesterday, Thursday, data showed that the number of Americans who filed new applications for unemployment benefits fell last week to the lowest level in a month, indicating the strength of the labor market, which is likely to put pressure on the US Central Bank to keep interest rates unchanged.

Gold has risen 28 percent year to date and reached an all-time high of $2,790.15 on October 31, supported by interest cuts and increasing geopolitical uncertainty.

Gold is usually seen as a hedge in times of geopolitical turmoil and inflation, but high interest rates reduce the attractiveness of the non-yielding asset.

Markets are preparing for major policy shifts, including tariffs, reduced regulation, and tax adjustments, in 2025 with Trump’s return to the White House in January.

As for other precious metals, silver fell in spot transactions 0.2 percent to $29.75 per ounce, palladium fell 0.3 percent to $922.58, while platinum increased 0.1 percent to $936.85. The three metals are heading for weekly gains.