Gold prices fell on Friday and were headed for weekly loss amid a slight uptick in dollar, while investors awaited a key U.S. inflation report that may provide further insight into the Federal Reserve’s policy trajectory.
Spot gold was down 0.4% at $3,303.51 an ounce, as of 0601 GMT. Bullion is down 1.6% so far this week.
U.S. gold futures fell 0.5% to $3,300.70.
The dollar index (.DXY), opens new tab rose 0.2%, making gold more expensive for overseas buyers.
“Gold prices are more or less consolidating at this point of time,” said Brian Lan, managing director at GoldSilver Central, Singapore.
“What we see is that these are normal market occurrences just at the range now is slightly wider mainly due to the confidence in the U.S. dollar.”
The U.S. personal consumption expenditures (PCE) report, the Fed’s preferred inflation measure, is due at 1230 GMT and is likely to show that inflation rose 2.2% in April, according to economists polled by Reuters, compared with a 2.3% increase in March.
San Francisco Fed President Mary Daly said on Thursday that policymakers could still reduce rates twice this year, but rates should remain steady for now to ensure inflation is on track to reach the central bank’s 2% goal.
Non-yielding bullion tends to benefit in low-interest-rate environments.
Meanwhile, a federal appeals court temporarily reinstated President Donald Trump’s most extensive tariffs on Thursday, following a U.S. trade court’s ruling on Wednesday that Trump had overstepped his authority by imposing these duties and subsequently ordered an immediate halt.
Physical gold demand in India was subdued this week, as an uptick in domestic prices and the wedding season winding up kept buyers at bay, while premiums slipped in top consumer China.
Spot silver fell 0.7% to $33.1 an ounce, platinum was down 0.6% to $1,076.33 and palladium dropped 0.5% to $968.79.
