Gold steady, set for weekly loss as strong US data boosts dollar

SINGAPORE: Gold prices held steady on Friday but were on track for a weekly decline, as a stronger dollar and upbeat US economic data weighed on the precious metal. Meanwhile, platinum surged to its highest level in nearly a decade.

As of 0156 GMT, spot gold was unchanged at $3,337.59 per ounce. US gold futures dipped slightly by 0.1 per cent to $3,343.20. So far this week, gold has fallen about 0.5 per cent.

The dollar slipped 0.1 per cent against major currencies on Friday but was still poised for its second straight weekly gain. A firmer dollar typically makes gold more expensive for buyers using other currencies.

“US economic data continues to show resilience, which supports the view that the Federal Reserve might not rush into rate cuts,” said Kelvin Wong, senior market analyst at OANDA.

Fresh data released on Thursday showed that US retail sales grew more than expected in June, rising 0.6 per cent after falling 0.9 per cent in May. Initial jobless claims also declined by 7,000 to 221,000 for the week ending July 12, beating economists’ forecasts of 235,000.

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The figures suggest the US economy remains on firm ground, strengthening the Fed’s stance to hold off on further monetary easing for now.

However, Fed Governor Christopher Waller reiterated his view that interest rates should be cut later this month, citing growing risks to the economy. Lower rates tend to benefit gold, which is often seen as a safe-haven asset during periods of uncertainty.

Traders are also keeping a close eye on developments in global trade, as US President Donald Trump expanded his tariff measures, adding to market nerves.

In other metals, spot platinum rose 1 per cent to $1,472.20 per ounce, the highest since August 2014. Palladium gained 1.4 per cent to $1,297.78, reaching its highest level since August 2023. Silver held steady at $38.12 per ounce.

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