Gold prices see modest gains amid weekly decline, anticipation of Federal Reserve speech

(MENAFN) Gold prices showed a slight increase in Asian trading on Friday, rising by 0.2 percent to USD2,488.74 per ounce, while U.S. gold futures edged up by 0.3 percent to USD2,524.30. Despite this uptick, the precious metal is on track for a weekly decline, having fallen approximately 1 percent after reaching a historic peak of USD2,531.60 earlier in the week. This decline coincides with a rebound in the dollar index and benchmark 10-year U.S. Treasury yields, which rose following an unexpected increase in the unemployment rate.

Market observers are closely watching for insights from Federal Reserve Chairman Jerome Powell’s upcoming speech, scheduled for 1400 GMT. Powell’s remarks are expected to offer clues regarding future interest rate cuts, which could influence gold’s price direction. Tim Waterer, Chief Market Analyst at KCM Trade, suggested that gold’s current position below USD2,500 might be temporary, with underlying market fundamentals still supporting the metal's value.

In other precious metals, silver saw a minor increase of 0.2 percent, reaching USD29.03 per ounce. Platinum prices rose by 0.7 percent to USD950.55, while palladium experienced a decrease of 0.7 percent, falling to USD926.75.  

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