By: Economy Middle east

Gold prices hovered near a seven-week high on Friday, buoyed by expectations of further interest rate cuts next year after the U.S. Federal Reserve pushed back against hawkish market positioning. Silver, meanwhile, remained just shy of the record level it reached on Thursday.

In the UAE, gold rates eased slightly on Friday, with 24-carat gold declining AED1.75 to AED514 and 22-carat gold falling AED1.5 to AED476. Additionally, 21-carat gold lost AED1.5 to reach AED456.5, while 18-carat gold edged down AED1.25 to AED391.25.

Meanwhile, 14-carat gold fell AED1 to AED305.25.

Globally, spot gold eased 0.04 percent to $4,280.26 per ounce as of 6:35 GMT, but remained on course for a 1.8 percent weekly gain after touching its strongest level since October 21 in the previous session, while U.S. gold futures fell 0.05 percent to $4,310.95.

U.S. dollar set for third consecutive weekly decline

The U.S. dollar was headed for its third consecutive weekly decline, helping make gold prices more affordable for buyers using other currencies.

The Federal Reserve announced its third 25-basis-point rate cut of the year on Wednesday in a divided vote, and markets interpreted both its statement and Chair Jerome Powell’s remarks as less hawkish. Officials signalled that any additional policy easing would hinge on more definitive evidence of slowing inflation and a weakening labor market.

U.S. jobless claims rose last week by the largest margin in nearly four-and-a-half years, though the increase was not viewed as evidence of any significant deterioration in labor market conditions.

Lower interest-rate environments generally support non-yielding assets like gold, and investors are now looking ahead to next week’s U.S. non-farm payrolls report for further insight into the Federal Reserve’s policy trajectory.

Silver hovers near record high

As gold prices hovered near a seven-week high, spot silver declined 0.71 percent to $63.79 after touching a record high of $64.31 on Thursday, putting it on track for a 9.2 percent gain for the week.

Silver prices have more than doubled this year, underpinned by strong industrial demand, dwindling inventories and the metal’s addition to the U.S. critical minerals list. Exchange-traded fund inflows, tight physical supplies and expectations of further Fed rate cuts are also lending support to the metal.

In other precious metals, platinum was steady at $1,695.06, while palladium climbed 1.6 percent to $1,507.28. Both were on course for weekly gains.