But while the yellow metal saw some relief on Friday, it was nursing steep losses from the prior session after data showed that the U.S. economy grew more than expected in the second quarter.
The reading boosted the dollar and pulled gold more than 1% lower, as traders bet that strength in the U.S. economy will give the Federal Reserve enough headroom to keep raising interest rates.
The data also came just a day after the Fed hiked interest rates and left the door open for at least one more hike this year, given that inflation is still trending well above the central bank’s target range.
Rising U.S. interest rates bode poorly for gold and other metals, given that they push up the opportunity cost of holding non-yielding assets. The strong GDP reading saw gold wipe out all gains for the week, with the yellow metal now trading about 0.8% lower.
