Gold prices edged higher on Friday and were set for a weekly gain, driven by reports of top consumer China resuming gold purchases, and heightened expectations of an interest rate reduction by the Federal Reserve at its meeting next week.
Spot gold was up 0.3% at $2,688.29 U.S. per ounce. Bullion is headed for a weekly gain and has added more than 2% so far this week.
U.S. gold futures were steady Friday at $2,711.30 U.S.
Traders’ attention is now on the Fed’s decision on interest rates, and they see a 96.4% chance of a 25-basis-point (bp) cut.
Gold prices fell more than 1% Thursday on profit-taking after the bullion briefly hit a five-week high earlier in the session.
Spot silver was unchanged at $30.94 U.S. per ounce.
Platinum gained 0.4% to $933.65 U.S. and palladium fell 0.1% to $969.09 U.S. Both metals were set for weekly gains.