Gold slips as strong U.S. data lifts dollar
Gold prices fell on Friday after stronger-than-expected U.S. economic data boosted the dollar and reduced expectations that the Federal Reserve will cut interest rates soon.
Spot gold dropped 0.2% to $4,604.39 per ounce by 0619 GMT, though the metal is still on track for a weekly gain of around 2% after hitting a record $4,642.72 on Wednesday. U.S. gold futures for February delivery fell 0.3% to $4,608.50, News.Az reports, citing Reuters.
“The decline in gold reflects reduced odds of U.S. intervention in Iran and data showing no urgency to cut interest rates,” said Kyle Rodda, analyst at Capital.com.
The U.S. Labor Department reported weekly jobless claims fell to 198,000, well below the 215,000 expected, supporting a stronger dollar. A firmer dollar tends to make dollar-priced metals like gold more expensive for foreign buyers, reducing demand.
SPDR Gold Trust, the world’s largest gold-backed ETF, saw holdings rise 0.05% to 1,074.80 tons, its highest in over three and a half years.
Silver prices fell 1.9% to $90.61 per ounce but were up over 13% for the week after hitting an all-time high of $93.57. Platinum and palladium also dropped, with platinum down 3.5% to $2,326.36 and palladium 2.6% lower at $1,754.26 per ounce.
Market participants noted that easing geopolitical tensions in Iran and a softening U.S. stance on military intervention further reduced the appeal of safe-haven metals.
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