Gold prices have firmed on Friday but are poised for a weekly decline due to the strength of the dollar and Treasury yields, fueled by robust U.S. economic data, which has raised concerns of the Federal Reserve maintaining higher interest rates for a longer period.
Spot gold is up 0.2% at $1,922.87 per ounce as of 0116 GMT but is set for a 0.8% weekly fall. Meanwhile, U.S. gold futures have risen 0.2% to $1,946.90.
The U.S. dollar is on track for its longest weekly winning streak in nine years, benefiting from a strong run of U.S. economic data.
New filings for state unemployment benefits unexpectedly declined last week to the lowest level since February, as indicated by Thursday’s data.
U.S. Treasury yields dipped on Thursday, following a brief increase after the release of the jobs data. Investors are closely monitoring statements from several Fed officials.
New York Fed President John Williams has kept the door open regarding future U.S. interest rate policies. He acknowledged the decrease in inflation and the improved balance of the economy, suggesting no immediate need for a rate hike later this month.
Chicago Fed President Austan Goolsbee mentioned that achieving the “golden path” for the economy, characterized by falling inflation and avoiding a recession, is possible but not guaranteed.
Dallas Fed President Lorie Logan indicated that while it might be appropriate to skip an interest-rate increase in September, more tightening measures will likely be necessary to bring inflation down to 2% in a timely manner.
China’s gold holdings increased from 68.69 million ounces at the end of July to 69.62 million fine troy ounces at the end of August, according to recent data.
In other precious metals, spot silver has risen 0.2% to $23.01 per ounce, while platinum gained 0.3% to $906.14. Both metals, however, are on track for their worst weeks since June 23.
Palladium has increased by 0.2% to $1,214.83 but is set for its fourth consecutive weekly decline.
