Gold continues its weekly gains amid optimism over a less hawkish Fed policy

Gold and silver prices rose slightly this week. The rise in prices for these metals is due to optimistic forecasts about the prospect of a lower rate of interest rate hikes by the U.S. Federal Reserve. Such actions of the Fed help to offset deterioration in economic indicators. 

Spot prices for gold traded at a higher level than futures, a phenomenon called backwardation and indicating a possible increase in demand for the yellow metal in the near future, Investing.com reported.

There were not many trading factors on metals markets on Thursday because of a holiday in the U.S., and trading volumes also remained low. However, upbeat data from the minutes of the Federal Reserve's November meeting released earlier this week had a positive impact on prices.

As it follows from the minutes, some Fed members found it appropriate to slow down the pace of interest rate hikes, in order to assess the economic impact of a sharp increase in rates this year. This suggests relatively less pressure on the metals markets in the short term. 

Still, gold could benefit from renewed demand for safe-haven assets over the coming months, especially amid further depreciation of the dollar and deteriorating global economic conditions.