Gold gains on softer US dollar, geopolitical concerns; set for weekly fall
Bullion down 2% so far this week
Silver, platinum and palladium down for week
Russia hits Ukrainian energy facilities
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By Daksh Grover
Nov 29 (Reuters) -Gold prices rose on Friday, helped by a slight dip in the U.S. dollar and growing geopolitical tension, but remained ontrack for a weekly decline as markets awaited key U.S. data for further insights into the Federal Reserve's monetary policy direction.
Spot gold XAU= rose 0.7% to $2,660.03 per ounce, as of 0236 GMT. However, bullion was down 2% so far this week.
U.S. gold futures GCv1 gained 0.8% to $2,659.70.
The dollar index .DXY eased 0.2, boosting gold's appeal for holders of other currencies. USD/
The escalating geopoliticaltensions are makinginvestors flock to gold in the hopes of capitalisingon the potentialprice increases, said Brian Lan, managing director at Singapore-based dealer GoldSilver Central, adding, "The slight weakening of the dollar has helped gold prices to gain."
The Israeli military said its air force struck a facility used by Hezbollahto store mid-range rockets in southern Lebanon on Thursday amid mutual ceasefire breach accusations.
Additionally, Russia on Thursday unleashed its second big attack on Ukraine's energy infrastructure this month, triggering deep power cuts across the country.
Bullion is traditionally seen as a safe investment during economic and geopolitical uncertainties, such as conventional or trade wars.
Gold prices could test or dip below the key $2,600 level, with the metal likely to remain in a consolidation phase through December, Lan added.
Markets are pricing in a 66.5% chance of a 25-basis-points rate cut by the Federal Reserve inDecember, per the CME Fedwatch tool, potentially marking 2024's thirdcut.
Major U.S. data releases next week, including job openings, the ADP employment report and the employment report, are expected to offer cues about the Fed's rate cut outlook.
Spot silver XAG= added 1.1% to $30.58 per ounce, platinum XPT= gained 0.9% to $939.75 and palladium XPD= advanced 0.9% to $984.25. All three metals were set forweekly declines.
Reporting by Daksh Grover in Bengaluru; Editing by Sumana Nandy
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