Gold Loses Momentum as Strong Dollar and Rate Outlook Weigh
Gold prices retreated on Friday as a stronger US dollar and better-than-expected economic data dampened expectations for an imminent Federal Reserve rate cut.
Spot gold slipped to around $4,604 an ounce after hitting a record above $4,640 earlier in the week, though it remains on track for weekly gains of nearly 2 percent.
Analysts said improving US labor figures and easing geopolitical tensions, particularly regarding Iran, reduced safe-haven demand for the metal.
The firmer dollar also made dollar-denominated commodities more expensive for holders of other currencies.
Meanwhile, holdings in the SPDR Gold Trust edged higher to their strongest level in more than three years, indicating continued investor interest.
Other precious metals such as silver, platinum and palladium pulled back following sharp rallies, although silver remains near historic highs.
Spot gold slipped to around $4,604 an ounce after hitting a record above $4,640 earlier in the week, though it remains on track for weekly gains of nearly 2 percent.
Analysts said improving US labor figures and easing geopolitical tensions, particularly regarding Iran, reduced safe-haven demand for the metal.
The firmer dollar also made dollar-denominated commodities more expensive for holders of other currencies.
Meanwhile, holdings in the SPDR Gold Trust edged higher to their strongest level in more than three years, indicating continued investor interest.
Other precious metals such as silver, platinum and palladium pulled back following sharp rallies, although silver remains near historic highs.
