WASHINGTON (dpa-AFX) - Gold prices edged higher on Friday amid geopolitical concerns while investors avoided big moves and dissected the economic releases from yesterday and today.
Front Month Comex Gold for December delivery rose by $21.90 (or 0.50%) to $4,361.40 per troy ounce. Notably, this is a new record high for gold, which has risen for two consecutive weeks. Gold soared by $61.30 (or 1.43%) per troy ounce for this week.
Front Month Comex Silver for December delivery skyrocketed by $2.253 (or 3.49%) to $66.845 per troy ounce. This is also a new record high for silver, which has increased for four consecutive weeks. Silver catapulted by $5.4830 (or 8.94%) per troy ounce for this week.
On the economic front, data from the U.S. National Association of Realtors today revealed that existing home sales increased by 0.5% from November to an annual rate of 4.13 million.
The University of Michigan's consumer sentiment index was revised lower to 52.9 in December from a preliminary reading of 53.3.
In addition, the year-ahead inflation expectation fell for the fourth month to 4.2%.
Yesterday, the annual rate of growth by the U.S. Consumer Price Index came in at 2.7%, lower than the forecast figure of 3.1%. This soft number for November triggered expectations of more rate cuts by the Fed in the coming months.
Recently, the U.S. Federal Reserve lowered interest rates to the 3.50% to 3.75% range.
CME Group's FedWatch Tool is currently indicating that investors are now betting on a 22.1% chance of a 25-basis-point interest rate cut at the Federal Reserve's January 27-28 meeting.
However, New York Fed President John Williams noted in a CNBC interview that government officials were unable to collect data during the shutdown period and hence stated that the numbers could be distorted. He added that inflation data for December could provide a better reading on the magnitude of distortion.
On the geopolitical front, the U.S. brokered peace deal to end the Russia-Ukraine conflict is moving unsteadily, with 'territorial concessions' standing out as the sticking point.
With Ukraine claiming that it has taken back control of nearly all of the regions surrounding the northern city of Kupiansk, Russian President Vladimir Putin stated in an interview with NBC news that the responsibility to end the war now lies with Ukraine and its European allies.
Today, U.S. President Donald Trump stated that the talks are 'getting close to something,' hinting at a possible breakthrough.
In South America, the tension between the U.S. and Venezuela has escalated to the next level since Tuesday, with Trump ordering a 'total and complete' blockade of all tankers entering and leaving Venezuela which are sanctioned by the U.S.
Trump has not ruled out the possibility of a war with Venezuela.
In response, Venezuelan President Nicolas Maduro, who has repeatedly accused the Trump administration of eyeing on its oil and mineral wealth, denounced Trump's naval blockade as a war-mongering threat.
Venezuela has requested an emergency U.N. Security Council meeting to intervene for a resolution.
The U.S. dollar index was last seen trading at 98.58, up by 0.16 (or 0.16%) today.
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