FX.co ★ Gold On Track For Weekly Gain On Dovish Fed Bets

Gold edged up slightly on Friday and was on track for a weekly gain as investors price in more rate cuts next year.

Spot gold rose 0.3 percent to $2,041.60 per ounce, while U.S. gold futures were up 0.6 percent at $2,056.15.

At its meeting on Wednesday, the Federal Reserve signaled the end of tightening and hinted it would reduce rates by 75 basis points next year.

It is believed that the Fed's projections are more conservative, and the U.S. central bank could slash rates even further than forecast in 2024.

The prospects of lower borrowing costs next year dented the dollar and spurred a decline in Treasury yields.

Markets currently price in around a 75 percent chance of a rate cut in March.

The dollar was headed for a weekly drop after hitting a four-month low on Thursday. Meanwhile, benchmark U.S. 10-year bond yield hovered near its lowest level since July.