Gold prices are expected to continue their decline for the second consecutive week, due to the strength of the American economy, which has kept the dollar near its highest levels in several weeks. Investors are eagerly awaiting key inflation data scheduled to be released later today (Friday).
There has been no significant change in the price of gold in immediate transactions, with it remaining at 2021.28 dollars per ounce by 04:15 GMT. However, the US futures contracts for gold increased by 0.2% to 2021.20 dollars. Both have experienced a 0.4% loss so far this week.
Calvin Wong, the lead market analyst for Asia-Pacific at “Oanda,” stated that the US economy continues to exhibit flexibility, which reduces the strength of gold.
Official data showed that the US economy grew faster than expected in the fourth quarter, as inflationary pressures eased amid strong consumer spending.
The dollar index rose 0.2 percent over the week, hovering near a six-week high. This makes the precious metal less attractive to holders of other currencies.
Currently, the focus is on the preferred inflation gauge of the Federal Reserve (the US central bank), which is the Personal Consumption Expenditures (PCE) index, with its reading scheduled to be released at 13:30 Greenwich Mean Time.
As for other precious metals, silver declined by 0.2 percent to $22.87 per ounce in spot trading, while platinum remained steady at $891.90 and palladium dipped by 0.5 percent to $935.89.
