Gold Up, but Set for Second Weekly Loss as Strong U.S. Retail Data Boosts Dollar

© Reuters.

By Gina Lee – Gold was up on Friday morning in Asia but was headed towards a second weekly loss. The focus is now on a U.S. Federal Reserve policy decision that could provide clues on when asset tapering will begin.

edged up 0.12% to $1,758.75 by 11:39 PM ET (3:39 AM GMT). The yellow metal fell as much as 2.7% on Thursday and has dropped 1.8% so far in the past week.

The , which usually moves inversely to gold, inched down on Friday but remained near three-week highs.

The U.S. currency was boosted by data released on Thursday that showed that U.S. grew 1.8% month-on-month and grew 0.7% month-on-month in August.

September’s was 30.7, while the was at 26.3. increased to 332,000 over the past week.

Investors now await the Michigan Consumer Expectations and Michigan Consumer Sentiment indexes for September, due later in the day.

Some investors now expect the asset tapering to begin in November, according to a Reuters poll, as COVID-19 outbreaks involving the Delta variant likely dented economic recovery in the third quarter.

The Fed will meet next week to hand down its policy decision, which could provide clues to a timeline.

Across the Atlantic, European Central Bank (ECB) chief economist Philip Lane revealed in a private meeting with German economists that it expects to hit its 2% inflation goal by 2025, the Financial Times said on Thursday. However, ECB has since rejected the accuracy of the article, which had caused Bund futures to drop.

In other precious metals, silver was flat at $22.93 per ounce after hitting its lowest in more than a month on Thursday. Platinum rose 0.6% while palladium inched down 0.1%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.