Gold set for worst week in 3 years as US dollar rallies
Bullion down over 4% for the week so far
Silver, platinum and palladium also down for week
US retail sales data due at 1330 GMT
Updates prices
By Rahul Paswan
Nov 15 (Reuters) -Gold prices steadied near the previous session's two-month lows on Friday and were poised for their worst weekly performance in over three years as a rallying U.S. dollar and expectations of less aggressive interest rate cuts by the Federal Reserve pressured the precious metal.
Spot gold XAU= was little changed at $2,567.89 per ounce as of 1115 GMT. Prices have fallen more than 4% so far this week, touching their lowest since Sept. 12 on Thursday. U.S. gold futures GCv1 were also flat at $2,572.50.
"So far gold has been negatively impacted by the election of Trump but this can change if there is some more uncertainty which could come back in the medium term," said Kinesis Money market analyst Carlo Alberto De Casa, adding that Trump's policies were leading investors to expect higher U.S. inflation and interest rates.
"Overall markets are betting on a stronger U.S. dollar and that is bearish market driver for gold."
The dollar .DXY was set for its best week in more than a month. USD/
Economists believe President-elect Donald Trump's tariff plans would stoke inflation, potentially slowing the Fed's rate easing cycle. Higher interest rates make holding gold less attractive as investors can earn higher returns on other assets.
The U.S. central bank does not need to rush to lower interest rates, Fed Chair Jerome Powell said on Thursday in remarks that may point to borrowing costs remaining higher for longer for households and businesses alike.
Markets now see a 59% chance of a 25 basis point rate cut in December, down from 83% a day before, according to the CME Fedwatch tool.
U.S. retail sales data is due at 1330 GMT, while several Federal Reserve officials are scheduled to speak later.
Spot silver XAG= rose 0.3% to $30.56 per ounce, platinum XPT= was up 0.9% at $947.95 and palladium XPD= added 2.1% to $960.65. All three metals were on track for weekly declines.
Spot gold price in USD per oz https://reut.rs/4euEL2I
Reporting by Rahul Paswan in Bengaluru; Editing by Kirsten Donovan
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