Gold prices held steady on Friday and were set for a weekly rise on expectations of a US interest rate drop, but traders await Federal Reserve Chairman Jerome Powell’s speech next week for clues on the extent of the cut.
Spot gold fell 0.2% to $2,450.91 per ounce as of 0320 GMT, after climbing about 1% this week.
United States gold futures dipped 0.2% to $2,488.50.
U.S. economic data this week dispelled worries of a recession, but traders believe the Fed will cut rates in September.
Markets expect a 75% likelihood of a 25-basis-point decrease next month and a 25% possibility of a 50-basis-point cut, according to the CME FedWatch tool. Traders were evenly divided at the beginning of the week between the two cut choices.
A low interest rate environment tends to make non-yielding bullion more appealing.
The minutes of the Fed’s July policy meeting are due on Wednesday, and Powell will speak about the US economic outlook at the Jackson Hole symposium next Friday.
Spot silver declined 0.8% to $28.16 per ounce, platinum slipped 0.1% to $951.95, and palladium fell 0.2% to $942.64. All metals were set for weekly gains.
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