Gold Set for Biggest Weekly Fall Since February

Gold prices ticked up on Friday but were on course for their biggest weekly drop in three and a half months as hopes of a resolution in the U.S. debt ceiling negotiations and fading expectations of a rate cut by year-end took some shine off bullion.

Spot gold was up 0.3% to $1,963.39 U.S. per ounce early Friday but on track for a 2.4% weekly drop — its biggest since early February.

U.S. gold futures rose 0.2% to $1,964.60.

Markets see a positive end to the debt-ceiling talks as recent commentary has been about the progress being made and given that yields and the dollar are all going up at the same time, gold is pulling back.

U.S. President Joe Biden and House of Representatives Speaker Kevin McCarthy hope to finalize a deal on the debt ceiling after Biden returns from the Group of Seven meeting in Japan on Sunday.

Elsewhere, Spot silver rose 0.6% to $23.64 U.S. per ounce, but was set for a second weekly fall.

Platinum advanced 0.3% to $1,052.43 U.S., and palladium climbed 1.5% to $1,474.63 U.S.

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