Gold Falls for Fourth Consecutive Session as Strong U.S. Data Supports Dollar
Gold prices extended losses for a fourth straight day on Friday as stronger U.S. economic data boosted the dollar and lowered expectations for near-term interest rate cuts from the Federal Reserve. Investors also remained focused on ongoing discussions between U.S. President Donald Trump and Chinese President Xi Jinping.
Spot gold declined 0.7% to $4,620.67 per ounce by 21:45 ET (01:45 GMT), while U.S. gold futures dropped 1.3% to $4,624.87 per ounce.
Overall, bullion has lost roughly 2% over the past week.
Strong U.S. Economic Data Pushes Dollar Higher
The U.S. Dollar Index gained 0.3% during Asian trading hours, reaching its highest level in two weeks and putting it on track for a weekly gain of more than 1%.
Recent U.S. economic reports have continued to show resilience, raising concerns that inflation pressures remain elevated. Rising oil prices linked to tensions in the Middle East have further added to inflation worries.
A stronger dollar typically weighs on gold prices because it makes precious metals more expensive for buyers using other currencies.
Inflation Data Reduces Expectations for Fed Rate Cuts
Economic figures released this week revealed that U.S. producer prices recorded their largest annual increase in four years during April. Consumer inflation also exceeded expectations, while retail sales data highlighted continued strength in consumer spending despite higher energy costs.
Following these reports, traders scaled back expectations for Federal Reserve interest rate cuts this year. Some market participants have even started considering the possibility of additional monetary tightening.
Gold is traditionally viewed as a safe-haven asset and a hedge against inflation or geopolitical uncertainty. However, higher interest rates often reduce gold’s appeal because the metal does not generate yield.
Trump-Xi Talks Remain in Focus for Investors
Markets closely monitored the summit between President Donald Trump and Chinese President Xi Jinping in Beijing for signals regarding U.S.-China trade relations and developments surrounding the Iran conflict.
Although both sides described the discussions as constructive, no significant policy breakthroughs had emerged after the first day of meetings.
Uncertainty surrounding future trade agreements and geopolitical tensions continued to influence investor sentiment across financial markets.
Trump’s Iran Comments Add to Geopolitical Concerns
President Donald Trump adopted a tougher stance on Iran on Friday, stating in a Truth Social post that “the military decimation of Iran (to be continued!).”
The comments reinforced ongoing geopolitical risks at a time when markets are balancing hopes for diplomatic progress between Washington and Beijing.
At the same time, disruptions in the Strait of Hormuz have pushed oil prices higher, increasing fears that prolonged inflationary pressures could continue to impact global markets and precious metals.
Silver and Platinum Also Record Losses
Other precious metals moved lower alongside gold.
Silver prices dropped 2.6% to $81.30 per ounce, while Platinum fell 1.5% to $2,028.60 per ounce.
