Gold rises, heads for weekly gains on monetary easing

Gold bars

Gold prices rose on Friday, maintaining an upward trend supported by the start of the Federal Reserve's easing cycle, which is expected to continue throughout the remainder of 2024.

Prices of December gold futures increased by 0.71%, or $18.5, to $2,633.10 an ounce at 10:18 am KSA time, heading for weekly gains of about 0.86%.

Spot gold also rose by 0.84% to $2,608.50 an ounce, while December silver contracts increased by 0.37% to $31.54. Meanwhile, spot platinum prices gained 0.40% to $992.01 an ounce.

Kyle Rodda as Senior Market Analyst at Capital.com, told Reuters that the current market trends are very positive for gold. He suggested that if these favorable conditions persist, gold prices could range between $2,600 and $2,800 per ounce over the next 12 months.

In addition to the Fed’s interest rate cuts this week and expectations of further 25 basis point cuts in the upcoming November and December meetings, ongoing geopolitical tensions in the Middle East continue to support gold prices.