Spot gold was little changed at $2,005.39 per ounce, as of 1018 GMT, and has lost nearly 1% for the week so far.
Gold held steady on Friday but was on track for a second consecutive weekly fall as traders lowered expectations of rapid U.S. rate cuts, while markets sought more data for further clarity on the Federal Reserve‘s next move. Spot gold was little changed at $2,005.39 per ounce, as of 1018 GMT, and has lost nearly 1% for the week so far.
“The slight push back on earlier rate cut (expectations) has seen some unwinding in gold prices, buyers are now seeking to defend the key psychological $2,000 level. But given the resilience of the U.S. dollar, any turnaround for the yellow metal may still be unsustainable in the near term,” said IG market strategist Yeap Jun Rong.
The dollar index was set for a weekly rise, making bullion less appealing for holders of other currencies.Earlier this week, bullion fell to a two-month low after data showed consumer prices rose more than expected last month, but it recouped some of its losses on Thursday after U.S. retail sales fell more than expected in January.
“Until the first cut is delivered, the market may at times run ahead of itself, in the process building up rate cut expectations to levels that leave prices vulnerable to a correction,” said Jigar Pandit, vice president and business head of the commodity & currency group at Sharekhan by BNP Paribas.
The market is awaiting the U.S. producer price index due at 1330 GMT and comments from Fed officials. Fed Atlanta President Raphael Bostic said on Thursday that more time is needed to weigh the prospect of a rate cut.
The Fed is expected to hold interest rates steady at its policy meeting next month and traders see the first cut likely in June. Spot platinum fell 1.3% to $886.20 per ounce, palladium was down 1.7% to $937.18, while silver was 0.4% higher to $22.99.
Source:financialexpress.com