Gold set for weekly fall as more U.S. rate hikes expected
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Gold prices headed for another weekly fall on Friday, holding near last session's two-month lows as prospects of more interest rate hikes by the U.S. Federal Reserve dimmed bullion's appeal amid a slew of strong economic data.
Spot gold was little changed at $1,821.99 per ounce by 1123 GMT. U.S. gold futures rose 0.2% to $1,829.70.
Bullion has lost about 7% since the beginning of February, having posted significant declines in the previous two out of three weeks and is down about 1% this week.
Gold is trying to find support around the $1,820 level, but prices could drift still lower towards $1,776 on strong personal consumption expenditure data, said Ole Hansen, head of commodity strategy at Saxo Bank.
"The market is looking to stabilise after the long overdue correction, which has now been unfolding for the past three weeks."
The Fed's preferred inflation measure, the PCE data for January, is due at 1330 GMT and will be closely watched by traders.
Data on Thursday showed U.S. GDP increased at a revised 2.7% annualised rate last quarter, while new claims for unemployment benefits unexpectedly fell last week.
Recent economic data out of the United States points to a resilient economy, giving more ammunition to central banks to raise rates.
"While the metal may continue to drift slightly downward in the near-term, the medium-term prospects look more promising, particularly given the view that the U.S. dollar has now peaked," Kinesis Money analyst Rupert Rowling said in a note.
The dollar index edged up 0.1%, making bullion a less attractive bet for overseas buyers.
Spot silver fell 0.8% to $21.12 per ounce while platinum was down 0.9% to $938.78.
Palladium fell 0.2% to $1,446.62 after touching their lowest level since Aug. 2019 at $1,428.80.
