Gold prices experienced a slight decline on Friday, relinquishing some of their gains for the week amid comments from Federal Reserve officials that tempered expectations of imminent interest rate cuts.
Spot gold steadied at $2,377.40 an ounce, while gold futures expiring in June dipped slightly to $2,381.10 an ounce by 00:19 ET (04:19 GMT).
The retreat in gold prices followed a rally earlier in the week, during which the yellow metal surged to nearly $2,400 an ounce in response to softer U.S. economic data. However, the momentum waned as Fed officials provided a more cautious stance on rate adjustments.
Several members of the central bank’s rate-setting committee signaled that the Fed would require further evidence that inflationary pressures were easing beyond marginal softness observed in April. Consequently, traders began to scale back expectations of a rate cut in September, prompting a rebound in the dollar and U.S. Treasury yields.
Despite the pullback, gold was still on track for a weekly gain of 0.7%, with softer-than-expected consumer price index readings providing support. The yellow metal remained close to a record high of above $2,430 an ounce, although reaching this level in the near-term appeared unlikely.
In contrast, other precious metals experienced declines on Friday but were poised for substantial weekly gains. Platinum futures dipped 0.2% but were up 6.2% for the week, while silver futures dropped 0.4% but registered a weekly gain of 4.5%.
Meanwhile, in the industrial metals sector, one-month copper futures retreated from two-year highs amid mixed economic data from China. However, three-month copper futures advanced, supported by expectations of tightening supplies and a prospective demand recovery in the coming months. Three-month copper futures on the London Metal Exchange climbed 0.6% to $10,445.0 a ton, while one-month copper futures rose 0.3% to $4.8935 a pound.
The mixed economic indicators from China presented a nuanced outlook for the world’s largest copper importer, with growth in industrial production outpacing expectations while retail sales growth slowed and house prices declined. Despite the uncertainties, three-month copper futures were up nearly 4% for the week, reaching two-year highs.
