Gold prices drop, head for weekly gains

Gold bars

Gold futures fell but were on track to post a second consecutive weekly gain, as weaker-than-expected US inflation data, while supporting a more dovish Federal Reserve stance, reduced the metal’s appeal as an inflation hedge.

During Friday’s session, gold futures for February 2026 fell 0.25%, or $9.90, to $4,354.60 an ounce.

Spot gold edged down 0.1% to $4,327.84 an ounce, while spot silver rose about 0.6% to $65.86 an ounce.

The dollar index—which measures the US currency against a basket of six major peers—rose slightly by 0.1% to 98.51 as of 9:17 a.m. Mecca time.

Silver futures for March 2026 climbed 0.95% to $65.84 an ounce, while spot platinum rose about 0.85% to $1,945.11, and spot palladium gained 1% to $1,704.18.

Goldman Sachs expects gold prices to rise 14% to around $4,900 an ounce by December 2026, citing upside risks driven by the potential expansion of investment diversification to include retail investors, Reuters reported.

Markets are awaiting the University of Michigan’s final reading of US consumer sentiment for December, which rose to 53.3 in the preliminary estimate from 51 in November, as well as inflation expectations.