Gold prices stabilized on Friday, but were heading for gains for the fifth week in a row, as the weakness of the dollar and hopes of a slowdown in raising US interest rates boosted the attractiveness of the yellow metal, which represents a safe haven.
And by 0308 GMT, gold settled in spot transactions at $ 1930.04 an ounce, up 0.5 percent during the week. On Thursday, prices recorded $1,935.20, the highest level since April 2022.
US gold futures rose 0.4 percent to $1,931.50.
According to a Reuters poll, the Federal Reserve is expected to end the monetary tightening cycle after raising 25 basis points at each of the next two policy meetings, and then likely keep interest rates steady for at least the rest of the year.
With lower interest rates, which means lower returns from assets such as government bonds, investors may prefer gold.
“There are indications that the US is likely heading into recession, and that will benefit gold,” said Brian Lan, managing director at Singapore-based GoldSilver Central.
Data on Wednesday showed US retail sales fell by the most in a year, putting the overall economy on a weaker growth path.
The dollar index is heading for its second weekly decline, making gold cheaper for overseas buyers.
As for other precious metals, spot silver rose 0.5 percent to $23.94.
Platinum fell 0.1% to $1,032.25, and palladium fell 0.3% to $1,748.28. Both metals are heading for a second week of decline.