Gold prices lost some ground on Friday and were due for a slight weekly fall as traders weighed recent U.S. economic data and hawkish signals from the Federal Reserve on further monetary tightening.
Spot gold fell 0.2% to $1,954.83 per ounce, U.S. gold futures edged 0.2% lower to $1,967.30.
Bullion tumbled to a three-month low on Thursday before reversing course to finish higher after U.S. economic data offered some respite from the Fed’s “hawkish pause” on rate hikes.
While gold is considered a safe haven during economic uncertainties, higher interest rates dull the appeal for zero-yield bullion.
Traders are now pricing in a 72% chance of a 25-basis point rate hike in July after the Fed signaled in new projections that borrowing costs might still need to rise by as much as half a percentage point by year-end.
In the next two weeks, gold could trade in the $1,931-$2,000 range, with stiff resistance seen at the upper end.
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