Gold prices edge higher on slightly weaker dollar; set for best week since mid-Nov By Investing.com

Investing.com – Gold prices rose in Asian trade on Friday, on track for a weekly gain, as a slight retreat in the greenback provided support, although the greenback remained near its two-year high, keeping pressure on bullion.

was up 0.2% at $2,662.94 an ounce, while ending February up 0.3% at $2,677.70 an ounce by 12:05 a.m. ET (05:05 GMT).

Gold is set for a weekly gain, the dollar’s strong cap gains

The yellow metal was set to rise about 2% this week, its best weekly gain since November 17. It had fallen in the previous two weeks.

Asia fell 0.2% on Friday, but remained close to a two-year high last month.They were also lower.

A weaker dollar usually boosts gold prices because it makes the metal cheaper for buyers using other currencies.

Markets are cautious in early 2025 as the US Federal Reserve has signaled two more rate cuts this year.

High interest rates typically push gold prices lower because they increase the ability to hold non-yielding assets like gold while making interest-bearing investments more attractive.

Friday saw other expensive gains, up 0.5% to $929.70 an ounce and 0.4% to $30.30 an ounce.

Copper remains under pressure as markets await new Chinese stimulus

Among industrial metals, copper prices edged lower as a strong dollar weighed, while Chinese factory activity data released a day earlier offered no support.

rose in December but at a slower-than-expected pace, data released on Thursday showed.

The data shows that the impact of recent stimulus measures is waning.Markets are waiting for more clarity on Beijing’s plans for this year’s stimulus measures.

The People’s Bank of China said it would cut interest rates from the current 1.5 percent “at the appropriate time” in 2025, the Financial Times reported on Friday.

On the London Metal Exchange, the benchmark rose 0.2% to $8,815.50 a ton, down 0.2% in February at $4.0260 a pound.