Gold prices remained mostly unchanged during early Asian trading on Friday, as strong U.S. economic data fueled a rally in the dollar and lifted risk sentiment, reducing the appeal of traditional safe-haven assets.
At 05:16 GMT, spot gold hovered around $3,339.61 an ounce, while September gold futures stood at $3,344.62. Despite some midweek gains, the metal is on course for a weekly loss of about 0.5%, pressured by rising U.S. yields and robust macroeconomic indicators.
U.S. Retail Strength, Fading Rate Cut Hopes Dampen Gold
Markets responded positively to June’s stronger-than-expected retail sales, which signaled continued resilience in U.S. consumer spending. This data, combined with sticky inflation, has led investors to reassess the likelihood of an imminent rate cut by the Federal Reserve.
With the central bank now seen holding interest rates higher for longer, the U.S. dollar gained roughly 0.7% over the week, weighing further on gold and other non-yielding assets.
Adding to the risk-on mood, a wave of strong quarterly earnings from major U.S. companies steered traders away from safe havens like gold. Meanwhile, uncertainty surrounding former President Donald Trump’s trade policy proposals has yet to meaningfully sway investor sentiment.
Platinum Surges Above $1,400, Hits 11-Year High
In contrast to gold’s muted performance, platinum prices soared this week, breaking past a long-standing resistance level at $1,400 and touching $1,465.43 per ounce, up 5.5% since Monday.
The rally was driven by tight supply forecasts, stronger industrial usage, and a shift toward alternative precious metals as gold prices remain near record highs. Analysts believe platinum’s breakout could mark the beginning of a longer-term bullish trend.
Other Metals Struggle to Gain Ground
Silver tracked gold lower, trading at $38.1225/oz, also down around 0.5% on the week.
Copper, meanwhile, posted modest moves. London Metal Exchange contracts rose 0.3% to $9,706.50 per metric ton, while COMEX futures climbed 0.6% to $5.5320 per pound. Both remained largely rangebound over the past several sessions, reflecting mixed demand signals.
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