Gold Retreats from Record Highs Amid Stronger Dollar
Gold prices declined over 1% to $3,015 an ounce on Friday, weighed down by a stronger U.S. dollar and profit-taking, yet remained on track for a third consecutive weekly gain.
Despite the pullback, bullion has risen 0.7% this week, supported by persistent geopolitical tensions and expectations of U.S. Federal Reserve rate cuts.
As a traditional safe-haven asset, gold has notched 16 record highs this year, reaching an all-time peak of $3,057.21 per ounce on Thursday.
The decline was driven by the dollar’s strength, which climbed to a two-week high, making gold more expensive for overseas buyers.
Nonetheless, market participants continue to anticipate at least two Fed rate cuts this year, reinforcing gold’s long-term bullish outlook.
Additionally, escalating geopolitical risks, including renewed conflict in Gaza, have sustained investor demand for the precious metal.
Source: Trading Economics