Gold prices fell on Friday after bullion hit a more than five-week high in the previous session and as the U.S. dollar gained, but prices were on track for a weekly rise on expectations of a Federal Reserve rate cut next week.

Spot gold was down 0.8% at $2,658.89 per ounce, as the U.S. dollar hovered near its highest in more than two weeks.

Bullion hit its highest since Nov. 6 on Thursday, and has risen nearly 1% so far for the week.

U.S. gold futures fell 1.1% to $2,678.50.

Underpinned by easing monetary policies, robust central bank buying, and safe-haven demand, gold has shattered multiple record peaks this year.

Traders now see a 97% chance of a 25 basis point rate cut at the Fed's Dec. 17-18 meeting.

The focus will also be on Chair Jerome Powell's commentary as market participants analyse U.S monetary policy for 2025, especially in the light of President-elect Donald Trump's tariff plan which economists say would stoke further inflation.

Source: Reuters