Gold prices held steady during Asian trading on Friday, reflecting subdued activity typical of year-end trading. However, the precious metal is on track for a slight weekly gain amid caution following the U.S. Federal Reserve’s hawkish stance.
Spot gold remained unchanged at $2,633.40 per ounce, while February gold futures dipped 0.2% to $2,649.91 an ounce as of 00:20 ET (05:20 GMT).
Year-end trading often sees reduced volumes and limited price movements as institutional traders and market participants wind down their activities for the holiday season. Furthermore, fewer economic data releases and major policy decisions during this period leave gold prices with fewer catalysts for significant fluctuations.
For the week, gold was set to rise 0.3%, recovering some ground after a more than 1% loss in the prior week. However, a robust U.S. dollar, buoyed by the Fed’s hawkish tilt last week, continued to exert downward pressure on bullion.
Gold Faces Headwinds from a Strong Dollar
The U.S. Dollar Index edged higher in Asian trade on Friday, hovering near the two-year high it reached last week.
A stronger dollar typically weighs on gold prices by making the metal more expensive for buyers using other currencies.
Gold prices slumped sharply after the Federal Reserve signaled expectations for only two rate cuts in 2025, down from the previously anticipated four.
Higher interest rates generally reduce the appeal of gold, favoring interest-bearing assets like bonds instead.
Other precious metals also showed little movement on Friday. Platinum futures remained unchanged at $954.50 an ounce, while silver futures held steady at $30.380 an ounce.
Copper Rises on Concentrate Shortage News, Strong Dollar Limits Gains
Copper prices climbed following a Reuters report indicating that China’s top copper smelters have lowered processing charge guidance for the first quarter of 2025, highlighting a continued shortage of copper concentrates.
During a meeting in Shanghai, the China Smelters Purchase Team set new treatment and refining charge rates for copper concentrate at $25 per metric ton and 2.5 cents per pound. These figures represent a 28.6% decrease from the fourth-quarter guidance of $35 per ton and 3.5 cents per pound.
Despite this supportive news, copper’s upside was capped by the strength of the U.S. dollar.
On the London Metal Exchange, benchmark copper futures rose 0.5% to $9,008.50 per ton. Meanwhile, February copper futures slipped 0.1% to $4.1360 per pound.
