Gold hovered around $2,600 per ounce on Friday, heading for a weekly decline as a hawkish Federal Reserve outlook weighed on prices.
Gold to close the week on a negative note
On Wednesday, the Fed signaled a cautious stance on further monetary easing, with dot plot projections pointing to only two rate cuts next year. Robust US GDP data, including an upward revision in consumer spending, further underscored the economy's resilience, bolstering the case for a slower pace of rate reductions. This has dampened gold demand, as limited monetary easing diminishes the appeal of non-yielding assets like bullion.
Pressure on outlook
Additionally, gold's near-term prospects are under pressure from weakening physical demand in India, where officials anticipate a sharp drop in gold imports for December. Despite these challenges, the metal has climbed approximately 25% this year, supported by US monetary easing, safe-haven buying, and significant central bank purchases.
