Bullion up about 1.3 this week
U.S. central bank projects only two reductions in 2025
Dollar down 0.4 against its rivals
UBS keeps silver prices target at 36oz38oz for 2025

Jan 3 Reuters Gold prices touched their highest level in three weeks on Friday supported by a softer dollar and safehaven buying, while markets braced for potential economic and interest rate changes from U.S. Presidentelect Donald Trump.

Spot gold was little changed at 2,654.21 per ounce, as of 0917 GMT, hitting its highest level since Dec. 13. Bullion is up about 1.3 for the week so far.

U.S. gold futures were steady at 2,668.70.

The dollar index fell 0.4 from over a twoyear high hit in the previous session, making dollarpriced bullion more affordable for holders of other currencies.

Gold bulls are setting the tone early doors this year, enjoying the lift from safe haven bids while riskier equities struggle to hold on to nascent gains, said Exinity Group Chief Market Analyst Han Tan.

On the geopolitical front, in Gaza Israeli airstrikes killed at least 68 Palestinians, Gaza authorities said. While, Russia launched a drone strike on the Ukrainian capital Kyiv on Wednesday, city officials said.

Trump39;s inauguration on Jan. 20 has heightened uncertainty, with his proposed tariffs and protectionist policies expected by many economists to be inflationary and potentially spark trade wars.

Markets are aware that Trump39;s policies risk reawakening U.S. inflationary impulses, which should be…