Gold prices retreated from a three-week high on Friday as the US dollar index bounced back, leading traders to pocket recent gains in the precious metal ahead of the year-end holidays.
Spot gold (XAU/USD) dropped to $2,063 per ounce by 10:20 GMT after reaching its highest since early December earlier this week.
The recent gold price rally was driven by a weaker dollar and falling bond yields as markets increasingly bet on US interest rate cuts in early 2024. However, with liquidity thinning towards the end of the year, the lack of fresh catalysts has kept the upside limited.
Going into 2024, gold’s next potential catalyst is likely to come from key economic data like manufacturing surveys and the January jobs report. For now, with little on the data agenda, expect subdued trading to round out the year.
