Gold Prices Fall as Dollar Rises
Gold prices fell on Friday amid a slight uptick in the dollar, while investors awaited a key U.S. inflation report that may provide further insight into the Federal Reserve’s policy trajectory.
Spot gold was down 0.5% at $3,300.59 an ounce as of 0313 GMT. Bullion has declined 1.7% so far this week.
U.S. gold futures also dropped 0.5% to $3,298.30.
The dollar index rose 0.2%, making gold more expensive for overseas buyers.
“Gold prices are more or less consolidating at this point in time. What we see is that these are normal market occurrences; the range now is slightly wider mainly due to the confidence in the U.S. dollar,” said Brian Lan, managing director at GoldSilver Central, Singapore.
Investors are awaiting the April U.S. personal consumption expenditures (PCE) price index report, the Fed’s preferred inflation measure, which is due at 1230 GMT.
According to a Reuters poll, the U.S. PCE is expected to remain at 0.1% month-on-month, while the year-on-year figure is anticipated to be at 2.2%.
San Francisco Fed President Mary Daly stated on Thursday that policymakers could still reduce interest rates twice this year, but rates should remain steady for now to ensure inflation remains on track to reach the central bank’s 2% goal. Non-yielding bullion tends to benefit in low-interest-rate environments.
Meanwhile, a federal appeals court temporarily reinstated President Donald Trump’s most extensive tariffs on Thursday, following a U.S. trade court’s ruling that Trump had overstepped his authority by imposing these duties and subsequently ordered an immediate halt.
U.S. trade talks with China are “a bit stalled,” and getting a deal over the finish line will likely need direct involvement from Trump and Chinese President Xi Jinping, U.S. Treasury Secretary Scott Bessent said on Thursday.
Spot silver fell 0.8% to $33.07 an ounce, platinum was steady at $1,081.93, and palladium dropped 0.3% to $970.43.
