Gold (XAU/USD) prices rose on Friday, clawing back some of the previous session’s losses as the dollar weakened slightly. However, bullion remains on track for weekly losses, with strong US economic data and fading rate cut expectations capping gains.
Spot gold was trading at $3,352 an ounce by 10:00 GMT, recovering from Thursday’s drop to $3,309 after US retail sales and jobless claims data surprised to the upside.
Thursday’s stronger-than-expected economic prints fuelled dollar strength and dented appetite for safe havens, sending gold sharply lower. US retail sales rose 0.6% in June, well above forecasts, while jobless claims fell to a seasonally adjusted 221,000, beating expectations of 235,000.
Stronger retail sales and jobless claims confirmed the US economy remains resilient, eroding hopes of imminent Fed rate cuts. Sticky inflation and upbeat data have markets betting Powell will keep rates steady later this month, despite political pressure from Trump.
The dollar eased against major currencies on Friday but remained on track for a second consecutive weekly gain. A stronger dollar typically weighs on gold by making it more expensive for non-dollar buyers.
Risk appetite was also bolstered by positive corporate earnings reports, further limiting demand for traditional safe havens like gold.
Gold’s modest rebound on Friday failed to erase earlier losses, with the yellow metal set for a small weekly decline.
Investors remain cautious amid persistent uncertainty over President Donald Trump’s aggressive trade tariffs, though recent data suggested limited immediate safe haven flows.
With the dollar buoyant and risk appetite improving, gold continues to trade within range, awaiting fresh catalysts.