Gold futures lost ground Friday, leaving the yellow metal on track for a weekly loss as investors awaited next week’s U.S. Federal Open Market Committee and looked to the U.S. dollar for near-term directional cues.
Gold for June delivery on Comex fell $15.80, or 1.3%, to $1,178.50 U.S. an ounce. Tracking the most-active contracts, gold is on track for a roughly 2% weekly decline and hasn’t closed under $1,180 U.S. since March 19, according to FactSet data.
May silver lost 13.4 cents, or 0.9%, to $15.695 U.S. an ounce, trading around 3.3% lower for the week.
Gold prices remained lower after data early Friday showed orders for durable U.S. goods rose a seasonally-adjusted 4% in March, though a drop in shipments of so-called core capital goods offered another sign first-quarter gross domestic product is likely to be weak.
The dollar was lower versus most major rivals Friday, but failed to give gold a lift. A weaker U.S. dollar can be a positive for commodities priced in dollars because it makes them cheaper for non-dollar users, while a stronger dollar can weigh on commodities. The dollar has been on a tear overall, with the ICE dollar index up roughly 7.6% since the end of last year.
The FOMC will hold a two-day meeting next week that’ll conclude with a statement on April 29.
In other metals trade, July platinum fell $9.50, or 0.8%, to $1,127.20 U.S. an ounce, while June palladium rose $1.20, or 0.2%, to $771.10 U.S. an ounce.
May copper rose 4.9 cents, or 1.8%, to $2.743 U.S. a pound.
