(Bloomberg) -- Gold edged higher after mixed US data, with investors focusing on the Federal Reserve's final policy meeting of the year.
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Bullion traded near $2,687 an ounce, after falling 1.4% on Thursday following reports showing US wholesale inflation unexpectedly accelerated in November, while applications for jobless benefits rose last week to a two-month high.
Gold is set to notch a weekly gain, with optimism increasing that the US central bank will cut rates by 25 basis points next week. Traders are shifting focus to the prospect that the Fed may pause policy easing early next year. Lower borrowing costs typically aid the metal, as it doesn't pay interest.
Prices are expected to rise more slowly in 2025 as growth and inflation concerns under a Donald Trump presidency will likely temper gains amid a complicated outlook for US interest rates, the World Gold Council said in a report on Thursday.
The precious metal, which has surged about 30% so far this year, is heading for its biggest annual gain since 2007. Its breakneck run has been supported by Fed easing, safe-haven demand, and sustained buying by the world's central banks.
Spot gold was 0.3% higher at $2,689.37 an ounce as of 5:43 a.m. in London, on track for a weekly increase of 2%. The Bloomberg Dollar Spot Index was steady, after gaining 0.3% in the previous session. Silver slipped, while platinum and palladium were steady.
--With assistance from Atul Prakash and Rob Verdonck.