Global Gold Market: Gold is set to record its worst weekly performance in three months due to a strengthening dollar
Gold prices fell due to a stronger dollar, marking the worst weekly performance in three months. On Friday, spot gold dropped 1% to $2,846.19 per ounce, with a cumulative decline of 3.1% for the week. The U.S. January PCE rose by 0.3%, in line with expectations, and the market remains cautious about the Federal Reserve's interest rate cuts. Safe-haven gold is still expected to rise for the second consecutive month, influenced by Trump's tariff plans. Silver, platinum, and palladium all recorded monthly declines
U.S. January PCE at 0.3%
Gold still expected to rise for the second consecutive month
Silver, platinum, and palladium all recorded monthly declines
Reuters, February 28 - Gold prices fell more than 1% on Friday as the dollar approached a two-week high, following U.S. inflation data that met expectations, indicating that the Federal Reserve may take a cautious stance on further rate cuts.
At 1844 GMT, spot gold (XAU=) was quoted at $2,846.19 per ounce, down 1%. So far this week, gold prices have accumulated a decline of 3.1%, marking the largest weekly drop since November.
U.S. futures gold (GCcv1) closed down 1.6% at $2,848.50.
The dollar index (.DXY) rose this week, making gold priced in dollars more expensive for overseas buyers. [US D/]
Jim Wyckoff, senior market analyst at Kitco Metals, said: "I think the main factors affecting the gold and silver markets are the week-long profit-taking (and) the strengthening dollar index."
The Personal Consumption Expenditures (PCE) price index for January grew by 0.3%, in line with expectations, while the increase for December was 0.3%, unadjusted.
Futures traders linked to the Federal Reserve's policy rate continued to bet on the Fed resuming cuts to short-term borrowing rates in June.
However, safe-haven gold is set to rise for the second consecutive month, primarily boosted by concerns over Trump's tariff plans.
Trump stated on Thursday that his proposal to impose a 25% tariff on goods from Mexico and Canada will take effect on March 4, and an additional 10% tariff on imports from China.
Spot silver (XAG=) fell 0.8% to $31; platinum (XPT=) dropped 1.1% to $938.50; palladium (XPD=) slid 0.6% to $914. All three metals are set to record monthly declines
