Prices for gold fell on Friday as the U.S. dollar rebounded, but the yellow metal was on track for a weekly gain underpinned by worries over a global economic recovery from the coronavirus-led slump.
Spot gold was down 0.8% at $1,938.53 U.S. per ounce early Friday, after hitting its best level since September 2 at $1,965.94 U.S. on Thursday. Gold has gained 0.4% this week.
The dollar index bounced back on Friday following a steep drop against the euro in the previous session and was on track for its best week since mid-May. A stronger greenback makes gold more expensive for holders of other currencies.
Casting a shadow over hopes for a quick economic rebound, U.S. weekly jobless claims hovered at high levels last week, suggesting a slowing labor market recovery.
Gold prices have climbed 28% this year as governments and major central banks pumped massive stimulus into the economy and kept interest rates low to alleviate the economic toll of the coronavirus.
Elsewhere, silver dropped 1.2% to $26.61 U.S. per ounce and palladium lost 0.7% to $2,278.86.
Platinum eased 0.4% to $922.43 U.S., but was heading for its best week since week-ending August 7, up 3%.
