However, the metal was on track for its best week in six ahead of a speech by Federal Reserve Chair Jerome Powell that could provide hints on the outlook for interest rates. Gold prices moved lower on Friday as the U.S. dollar recaptured a 2-1/2 month top.
As of 03:23 GMT, spot gold was down 0.2% to $1,913.90 per ounce, while U.S. gold futures were down 0.3% to $1,942.
As prices rose to their highest level since August 10 on Thursday in response to a decline in U.S. Treasury yields, gold prices have increased by around 1.3% so far this week, which may be the metal’s first week of gains this month.
On Thursday, two Fed officials expressed ambivalence about the recent increase in bond yields but noted that there is a good probability that no further interest rate increases will be required.
Investors will pay close attention to Powell and Christine Lagarde’s comments, which are scheduled for later today at the annual economic symposium in Jackson Hole, Wyoming, for additional rate cues.
According to Matt Simpson, a senior analyst at City Index, “the false break of $1,900 has provided a nice rally to the $1,920 area, but Powell has the ability to send gold back down to $1,900 as much as he could send it to $1,940.”
“Gold is clearly being hampered by the stronger U.S. dollar.”
For the sixth week in a row, the U.S. dollar increased, raising the price of bullion for international customers.
The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings dropped even more on Thursday and reached their lowest level since January 2020.
Other commodities were spot silver, which decreased by 0.4% to $24.04 per ounce, and platinum, which remained constant at $933.68. To $1,236.69, palladium dropped 0.3%.
Platinum and silver were on track to have their best weeks since July 14. Palladium was expected to drop for a second consecutive week.