Gold Falls, Trump-Xi Monitored
Gold prices weakened for the fourth straight session on Friday (May 15), pressured by a strengthening US dollar after a series of solid US economic data reduced expectations of imminent Fed policy easing. Market focus was also on talks between US President Donald Trump and Chinese President Xi Jinping in Beijing, which failed to produce any major policy breakthroughs on the first day.
Spot gold fell 0.7% to US$4,612.67 per ounce at 9:45 p.m. ET (01:45 GMT), while US gold futures fell 1.3% to US$4,624.87 per ounce. On a weekly basis, gold was down around 2%.
The US dollar index rose 0.3% in Asian trading to hit a two-week high, with weekly gains expected to exceed 1%. A stronger dollar increased the cost of gold for non-US buyers, while shifting interest rate expectations reduced the appeal of non-yielding bullion.
A series of US data releases this week reinforced concerns that inflationary pressures persist, particularly amid rising oil prices linked to Middle East tensions. April's PPI recorded its largest annual increase in four years, consumer inflation also exceeded expectations, and retail sales data indicated that consumer demand remained relatively resilient despite rising energy costs.
In this context, market participants trimmed their projections for a Fed interest rate cut this year, and some began to factor in the possibility of additional tightening. On the geopolitical front, the Trump-Xi meeting was closely watched for clues on the direction of trade relations and the Iran issue. Both sides called the discussions "constructive," but there were no clear policy outcomes, while Trump took a tougher tone on Iran through social media posts that asserted military operations would continue.
Other precious metals also weakened: silver fell 2.6% to US$81.30 per ounce, and platinum fell 1.5% to US$2,028.60 per ounce. (asd)
Source: Newsmaker.id
