Gold Slips From Three-Week High as Strong Dollar Weighs
Gold prices retreated from a three-week high on Friday, pressured by a robust dollar, while markets braced for potential economic and trade shifts under U.S. President-elect Donald Trump.
Spot gold eased 0.6% to $2,641.52 an ounce at 01:41 p.m. ET (1841 GMT), after hitting its highest level since Dec. 13 earlier in the session. Bullion is up about 0.8% for the week so far.
U.S. gold futures settled 0.5% lower at $2,654.70.
The new president's agenda that supports higher tariffs has boosted the dollar and created significant underlying pressure on metal markets, said Nitesh Shah, commodity strategist at WisdomTree.
The dollar index (.DXY), was set for its strongest weekly performance since mid-November, making gold pricier for overseas buyers.
Trump is set to take the oath of office on Jan. 20. His proposed tariffs and protectionist policies are expected to fuel inflation.
This could slow the U.S. Federal Reserve's interest rate cuts, limiting gold's upside. After three rate cuts in 2024, the Fed projects only two reductions in 2025 due to persistent inflation.
Gold, which thrives in low-rate environments, is currently benefiting from seasonal demand.
Spot silver rose 0.2% to $29.63 per ounce, platinum added 1.9% to $940.80, and palladium gained 1.7% to $926.51.
Source : Reuters
