Gold prices retreated on Friday, snapping a seven-day winning streak as traders brace for pivotal US labour market data likely to influence the Federal Reserve’s monetary policy outlook.
The precious metal tumbled from Thursday’s record high of $2,305.31 an ounce, trading at $2,278.81 by 06:18 GMT. A recovery in the US dollar, buoyed by hawkish rhetoric from Fed officials, also exerted downward pressure on gold.
Notwithstanding the day’s declines, analysts suggest geopolitical tensions in the Middle East could bolster safe-haven demand for the yellow metal. Escalating hostilities between Iran and Israel have stoked concerns over regional stability.
Berto Tordecilla
Technical indicators signalled gold’s buying momentum had become overstretched following its strong rally through March and early April. Nevertheless, the asset had previously shrugged off the greenback’s strength and warnings of higher US interest rates, benefiting from heightened risk aversion.
Traders now appear poised to book some profits ahead of Friday’s critical US nonfarm payrolls report and next week’s consumer price index data – key determinants of the Fed’s policy trajectory.
Elsewhere, silver dipped to $26.66 after reaching $27.35 on Thursday, while markets await Chinese inflation and trade figures next week for further economic cues.
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