Gold prices inched up a bit on Friday but held near six-week lows plumbed in the previous session, as the U.S. dollar firmed after upbeat U.S. economic data supported the Federal Reserve's resolve for steady interest rate hikes over the next year.
Spot gold was up 0.2% to $1,184.91 U.S. as of early Friday morning. On Thursday, the shiny yellow metal fell about 1% and touched its lowest since Aug. 17 at $1,181.61 an ounce. Spot gold is down about 1.2% for the week, on track for its fourth weekly decline in five.
U.S. gold futures were up 0.1% at $1,188.80 U.S. an ounce.
The short-term outlook is bearish for gold as the dollar may see some upside due to an ongoing trade war between China and the U.S. and the Federal Reserve interest rate hike outlook, according to at least one analyst.
The U.S. Federal Reserve raised interest rates on Wednesday and said it planned four more increases by the end of 2019 and another in 2020.
Gold is down more than 13% from an April high, largely because of the stronger dollar, which has been boosted by a vibrant U.S. economy and fears of a global trade war. Investors have bought the greenback instead of gold as a safe investment.
Among other metals, palladium touched a fresh eight-month high at $1,087.40 U.S. an ounce. Silver rose 0.6% to $14.29 an ounce and platinum declined 0.4% to $806.00 U.S.
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