Gold prices were subdued on Friday, hurt by a stronger dollar and higher Treasury yields, while investors looked ahead to next week's U.S. inflation reading for clues on when the Federal Reserve could begin cutting interest rates, reports Reuters.
Spot gold was down 0.2 per cent to $2,029.80 per ounce at 1236 GMT, with prices down 0.5 per cent over the week. US gold futures also lost 0.2 per cent to $2,044.50 per ounce.
The dollar index remained on track for a weekly rise, making gold more expensive for holders of other currencies, while the US 10-year Treasury yield also edged higher.
Jigar Trivedi, a senior analyst at Reliance Securities, said that Fed Chair Jerome Powell's recent comments had reduced the probability of an interest rate cut in March, putting a cap on gold prices.
After several Fed policymakers this week said they would wait to cut rates until they were more confident that inflation would fall to 2 per cent, all eyes will be on Tuesday's US consumer price index report.
Elsewhere, palladium rose 0.3 per cent to $889.62 per ounce and platinum was down 0.5 per cent to $880.56. Prices of both metals were heading for a second weekly dip.
Gold pressured by firm dollar
FE Team | Published: February 09, 2024 21:54:14
Gold pressured by firm dollar
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