Nov 28 (Reuters) - Gold prices rose to a two-week high
in early Asian trade on Friday, as bets increased for a U.S.
interest rate cut next month amid conflicting signals from
Federal Reserve officials.
FUNDAMENTALS
* Spot gold rose 0.6% to $4,180.89 per ounce by 0100
GMT, hitting its highest level since November 14, and was set
for a 3% weekly gain. U.S. gold futures for December
delivery were up 0.3% at $4,215.80 per ounce.
* U.S. rate futures are pricing in an 87% chance of a rate
cut in December, compared with 85% a day prior, according to the
CME's FedWatch tool.
* Comments from San Francisco Federal Reserve Bank President
Mary Daly and Fed Governor Christopher Waller this week have
bolstered expectations for a rate cut.
* Their stance, however, contrasted with several regional
Fed presidents advocating a pause until inflation shows a more
convincing move towards the 2% target.
* Meanwhile, Kevin Hassett, who has emerged as a front
runner to replace Jerome Powell as Fed Chair, like U.S.
President Donald Trump, has said interest rates should be lower.
* Non-yielding gold tends to perform well in
low-interest-rate environments.
* Trading was thin with U.S. markets closed on Thursday for
the Thanksgiving holiday.
* The U.S. dollar was headed for its steepest weekly drop in
four months in the previous session as investors bet on further
monetary easing, amid pressure from President Trump to cut
rates.
* Elsewhere, spot silver rose 0.2% to $53.53 per
ounce and platinum gained 0.6% to $1,617.15, with both up
7.4% for the week. Palladium lost 0.2% to $1,435.83 but
was set for a 4% weekly gain.
DATA/EVENTS (GMT)
0745 France GDP QQ Final Q3
0745 France CPI (EU Norm) Prelim MM, YY Nov
0745 France CPI Prelim MM, YY NSA Nov
0745 France Producer Prices YY Oct
0855 Germany Unemployment Chg, Rate SA Nov
1100 France Unemp Class-A SA Oct
1300 Germany CPI Prelim, HICP Prelim YY Nov
(Reporting by Ishaan Arora; Editing by Subhranshu Sahu)
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