(Bloomberg) -- Gold was steady amid thin trading due to the Thanksgiving holiday in the US, with investors weighing the outlook for Federal Reserve rate cuts and rising tensions in Ukraine.
Bullion traded near $2,640 an ounce on Friday and was down around 3% for the week after a cease-fire between Israel and Hezbollah took away some haven demand. Swaps markets are pricing in a more than 60% chance the Fed will reduce borrowing costs again next month.
Markets were also monitoring fresh threats from Russia, after President Vladimir Putin warned on Thursday that his forces could strike “decision-making centers” in Kyiv with new ballistic missiles, which could further escalate the war in Ukraine.
The precious metal is still up by almost 30% this year, although its rally has gone into reverse this month after Donald Trump’s election victory boosted the dollar, making gold more expensive for many buyers. A gauge of the US currency is on track for its first weekly decline in eight, however, a potential positive for bullion if the losses persist.
Spot gold was little changed at $2,637.32 an ounce as of 8:17 a.m. in Singapore. The Bloomberg Dollar Spot Index dipped 0.1%, and is down 1% this week. Silver was steady, while platinum and palladium edged lower.
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