Gold prices edge down, dollar index stable

Gold bars

Gold prices inched lower on Friday as the US dollar index remained stable, despite continued demand for safe-haven assets amid global geopolitical tensions.

Gold futures for February delivery slipped by 0.11% or $3 to $2,650.90 an ounce as of 10:36 am KSA time and are on track for a weekly loss of about 0.10%.

Spot gold held steady at $2,636.08 an ounce, while silver futures for March delivery remained unchanged at $30.415 an ounce. Platinum spot prices fell by 0.14% to $938.48 an ounce.

The dollar index, which measures the greenback's value against a basket of six major currencies, held steady at 108.17 points. Trading activity has been subdued this week due to the closure of several global markets for New Year celebrations.

Throughout 2024, gold has risen nearly 27% on geopolitical tensions and the Federal Reserve’s decision to end its monetary tightening cycle following the pandemic-induced economic crisis.

However, these gains were capped by the strengthening greenback, which surged after Donald Trump’s victory in the US Presidential election held on Nov. 5.