- Gold prices saw a modest rise in Asian trading on Friday, on track to secure weekly gains. A slight pullback in the dollar's value provided support. However, the greenback remained close to its two-year high, keeping pressure on the precious metal.

- Spot gold rose by 0.2% to $2,662.94 per ounce, while February gold futures increased by 0.3% to $2,677.70 per ounce.

- Gold is poised to achieve strong weekly gains, but the strong dollar is limiting its upward momentum. The yellow metal is set to gain nearly 2% this week, marking its best weekly performance since November 17, following declines in the previous two weeks.

- The U.S. Dollar Index fell by 0.2% during the Asian session on Friday but remained near a two-year high reached last month. U.S. Dollar Index futures also saw a decline.

- Markets are cautious and awaiting further developments as they enter 2025, with the U.S. Federal Reserve signaling two more interest rate cuts this year.

- Higher interest rates typically exert downward pressure on gold prices, as they increase the opportunity cost of holding non-yielding assets like gold while making yield-bearing investments more attractive.

- On the other hand, platinum futures rose by 0.5% to $929.70 per ounce, while silver futures gained 0.4%, reaching $30.30 per ounce.

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