Gold ticked higher as the final week of the year got under way, with traders looking ahead to interest rate cuts from the Federal Reserve in 2024 and a weaker US currency.

Bullion is trading near a record high, heading for its first annual increase in three years, as data showing US price pressures easing reinforces expectations for multiple rate cuts in 2024.

A report last week showed the Fed’s preferred gauge of underlying inflation barely rose last month and — by one measure — even trailed the policymaker’s 2% target.

Swaps markets are now pricing in a more than 80% chance of a cut by March, which would be bullish for non-interest bearing assets like gold, though some central bank officials have pushed back on the prospect of early easing.

Gold rose 0.6% to $2,064.45 an ounce as of 6:33 a.m. London time, after climbing 1.7% last week. Bullion closed at a record $2,072.22 on Dec. 1. The Bloomberg Dollar Spot Index was 0.1% lower. Silver and palladium gained, while platinum was steady.

This article was provided by Bloomberg News.