Gold rises, achieves 2% weekly gain

Gold bars

Gold prices ended Friday's volatile trading higher, posting weekly gains supported by the Federal Reserve’s interest-rate cut decision, although the precious metals market simultaneously faced a wave of profit-taking.

Gold futures for February delivery increased 0.35%, or $15.3, to $4,328.30 per ounce, extending weekly gains to 2%.

The most-active gold contracts had surged by about 1.70% earlier in the session, but later came under pressure from profit-taking following the Fed's rate-cut decision last Wednesday.

This was compounded by investors assessing comments from several monetary policymakers who expressed more hawkish stances toward future rate cuts, citing concerns over rising inflation.

Cleveland Fed President Beth Hammack said she prefers interest rates to remain slightly more restrictive in order to keep pressure on inflation, which she noted remains too high.

Kansas City Fed President Jeff Schmid echoed this view, explaining that it was the reason he opposed this week’s interest rate cut.

As a result, the most-active silver futures for March delivery turned lower, falling 4.59% to $61.63 per ounce at 10:09 p.m. Makkah time, after touching a record high of $65.085 during the session.

Meanwhile, December silver futures closed down 4% at $61.362 per ounce, but still recorded weekly gains of around 5%.