Gold prices held near a seven-week high on Friday, supported by expectations of more interest rate cuts next year after the U.S. Federal Reserve pushed back against hawkish market bets, while silver hovered just below Thursday's record peak.

While gold, and every other market, bounced around as investors tried to figure out what the Federal Reserve is thinking, the precious metal is now “ending its correction phase as it breaks out of the trading range of the past month or so,” said Brien Lundin, editor of Gold Newsletter.