ABC News Today

Gold prices were flat on Friday but headed for a second week of gains as some weak U.S. economic data fueled expectations that the Federal Reserve could ease the aggressive pace of rate hikes. interest from December.

Spot gold was steady at $1,663.22 an ounce as of 01:30 GMT, but was up 0.4% for the week so far.

US Gold Futures were unchanged at $1,666.00.

The dollar index was steady after rising 0.7% overnight, although the benchmark 10-year Treasury yields were below the 4% threshold.

The US economy rebounded strongly in the third quarter amid a narrowing trade deficit, but the data overstated the country’s economic health as domestic demand was the weakest in two years.

The Fed is expected to announce another rate hike of 75 basis points at its meeting next week, although the central bank is seen to slow its aggressive pace in December.

Rate hikes in the U.S. increase the opportunity cost of owning bullion at zero yield, while boosting the dollar, in which it is priced.

The European Central Bank raised interest rates by 75 basis points on Thursday and put shrinking its bloated balance sheet on the agenda, but said “substantial” progress had already been made in its attempt to combat a historic rise in inflation.

Holdings of SPDR Gold Trustthe world’s largest gold exchange-traded fund, fell 0.34% to 925.20 tonnes on Thursday.

silver stain eased 0.2% to $19.54 an ounce, platinum rose 0.2% to $962.03 and palladium gained 0.5% to $1,951.07.