Gold inches up as dollar retreats, but weekly decline looms amid strong U.S. data
Shafaq News/ Gold edged slightly higher on Friday as the dollar retreated from recent highs. However, the precious metal is still on course to record a weekly decline as investors focus on increasingly robust U.S. economic data.
In spot transactions, gold rose 0.3 percent to reach $1,925.14 per ounce by 0545 GMT. However, it remains on track for a weekly decline of 0.7 percent. Meanwhile, U.S. gold futures increased by 0.4 percent to $1,949.40.
Ilya Spivak, the Head of Global Macro at Tasty Live, remarked, "If it turns out that the Fed needs to maintain its current interest rate stance for an extended period, it will be detrimental for gold because it implies higher bond yields and a stronger dollar."
The dollar weakened by 0.2 percent but is en route to achieving its longest streak of weekly gains in nine years, supported by robust economic data from the United States.
This week's data indicated that the U.S. services sector gained strength in August, while unemployment claims unexpectedly dropped last week to their lowest since February.
According to the CME Group's FeedWatch service, market traders anticipate a 93 percent likelihood that the Federal Reserve will keep interest rates steady at its September 19-20 meeting. However, they are placing a 41 percent bet that the Fed will raise interest rates again before 2024.
In terms of other precious metals, silver increased by 0.6 percent to $23.09 per ounce in spot transactions, while platinum gained 0.4 percent to $907.04. Nevertheless, both metals are on track for their worst weekly performance since June 23.
Palladium saw the most significant gain, rising by 1 percent to reach $1,224.03, ending a three-week losing streak.
