Gold prices rise: three-week peak reached on weak dollar

On Friday, gold prices rose to their highest level in three weeks, driven by a weakening dollar and strong demand for safe assets, UNN reports with reference to Reuters.

As of 12:50 GMT, the spot price of gold remained almost unchanged at $265.18 per ounce, having previously reached its highest level since December 13 at $265.10. Over the week, gold rose by about 1.4%. US gold futures stabilized at $2671.20.

The dollar index  was down 0.4% after hitting a two-year high in the previous session, making dollar-denominated gold more accessible to investors from other countries.

"Gold stocks are setting the tone early this year, enjoying support from safe-haven advocates, while riskier stocks are struggling to hold onto nascent gains," said Han Tan, chief market analyst at Exinity Group. 

Precious metals, which are traditionally used to hedge against economic and geopolitical instability, are showing growth in a low interest rate environment. After three consecutive rate cuts in 2024, the US Federal Reserve is currently forecasting only two cuts in 2025 due to persistent inflation.

The spot price of silver rose by 0.7% to $29.77 per ounce. UBS experts predict that in 2025 this metal could trade in the range of $36-38 per ounce due to lower real yields in the US and rising global industrial production.

Platinum prices rose by 1.1% to $932.95, while palladium rose by 1.4% to $923.95. Both metals are showing positive dynamics and are on track for weekly growth.

"Lower US real yields and stronger global industrial production should favor the metal in 2025," UBS said in a research note, adding that it sees silver in the range of $36-38 per ounce in 2025.

Platinum added 1.1% to $932.95, while palladium gained 1.4% to $923.95. Both metals were on track for weekly growth.

Recall 

In the United States in 2024 , the number of credit card defaults increased by 50% compared to the previous year.