Spot Gold retreated on Friday and looked set to register its largest weekly loss since early November 2024, as the US Dollar headed for its fourth straight week of gains and as fading global trade tensions weighed on the safe-haven allure of the metal.
The US and China agreed this week to temporarily lower harsh tariffs, which they imposed on each other in April.
Yesterday Gold rebounded from a 5-week low of $3,120.76, recouping part of recent losses, after US macro data added to expectations for further rate cuts by the Federal Reserve. US producer prices surprisingly dropped 0.5% in April, while monthly retail sales growth slowed to 0.1%.
Federal Reserve Governor Michael Barr said on Thursday that inflation was approaching the central bank’s 2% objective, but the Trump administration’s trade policies had clouded the outlook.
Spot Gold was last down 1.05% on the day to trade at $3,205.83 per troy ounce.
The precious metal has lost 3.51% so far this week.
Meanwhile, the US Dollar Index has gained 0.20% so far this week. A firmer dollar makes dollar-priced Gold less appealing to international investors holding other currencies.
“On the plus side, gold price dips continue to attract buyers, which shows that the precious metal remains a favored asset, with the global growth and inflation outlooks still looking rather murky,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
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