By Brijesh Patel
(Reuters) – Gold prices traded flat on Friday and were headed for a weekly drop, weighed down by an overall stronger dollar and solid U.S. economic data, while platinum scaled to its highest level since August 2014.
Spot gold held its ground at $3,339.20 per ounce, as of 0640 GMT. U.S. gold futures were flat at $3,344.60. Bullion has declined 0.5% so far this week.
The dollar edged 0.1% lower against its rivals on Friday, but was headed for a second straight weekly gain. A stronger dollar makes greenback-priced bullion more expensive for other currency holders. [USD/]
“We are starting to see data coming in that is still supporting a rather vigilant U.S. economy and potentially market participants are still looking at a situation where we are not expecting a very dovish Fed,” OANDA senior market analyst Kelvin Wong said.
Data showed on Thursday that U.S. retail sales rose more than expected in June, advancing 0.6% last month after an unrevised 0.9% drop in May.
U.S. initial jobless claims were better than expected, dropping 7,000 to a seasonally adjusted 221,000 for the week ended July 12. Economists polled by Reuters had forecast 235,000 claims for the week.
The strong data showed the world’s largest economy remained on a stable footing, supporting the Federal Reserve’s hesitance to resume monetary policy easing.
Gold, often considered a safe-haven asset during times of economic uncertainty, tends to do well in a low-interest-rate environment.
“We expect the U.S. Fed’s rate-cut announcements later in 2025 and 2026 to hold the key to gold price increases going forward,” BMI analysts said in a note.
Meanwhile, investors closely watched trade negotiations as U.S. President Donald Trump broadened his tariff war.
Spot platinum eased 0.3% to $1,453.23 per ounce, after hitting its highest point in more than a decade earlier in the session.
Palladium climbed 1.5% to $1,293.32 to mark its highest level since August 2023. Silver was up 0.2% at $38.20.
(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich, Subhranshu Sahu and Sherry Jacob-Phillips)
