XAUUSD Analysis – On Friday, gold prices climbed to around $2,050 per ounce. This marked the second consecutive week of gains, fueled by a significant drop in both the dollar and Treasury yields. Investors are increasingly betting that the US Federal Reserve will lower interest rates next year. This sentiment follows data released on Thursday, indicating weaker than expected US economic growth in the third quarter.
Additionally, the Philadelphia Fed Manufacturing Index for December fell short of predictions. Now, investors are awaiting Friday’s US core PCE reading, the Fed’s preferred inflation measure, to gain insights into future monetary policies. In the UK, inflation in November hit a two-year low, suggesting a possible global trend of rate reductions. In other news, the Bank of Japan continued its very accommodative monetary policy, while the People’s Bank of China kept its benchmark lending rates stable.