By Anushree Mukherjee
(Reuters) – Gold prices gained on Friday, but were on track for a weekly decline on easing concerns about the U.S. Federal Reserve’s independence and strong U.S. data, while platinum rose to a near 11-year high.
Spot gold was up 0.3% at $3,349.49 per ounce, as of 0834 GMT, after falling 1.1% in the previous session. The bullion has declined 0.2% so far this week.
U.S. gold futures eased 0.3% to $3,354.70.
The dollar is down 0.4% for the day, but is headed for a second straight weekly rise. A stronger dollar tends to make gold expensive for buyers holding other currencies. [USD/]
Earlier in the week, a source told Reuters U.S. President Donald Trump was open to firing Fed Chair Powell, but Trump later said he doesn’t plan to sack him even as he renewed his criticism over interest rate policy.
Meanwhile, U.S, data showed that retail sales rose more than expected in June, while initial jobless claims were better than expected.
“Market participants remain concerned about the independence of the Fed. For now, those risks have declined, and U.S. economic data has remained solid, capping the upside for gold,” said UBS commodity analyst Giovanni Staunovo.
“But at the same time, Trump wants to see the Fed cutting rates aggressively… This is putting a floor under the market.”
Bullion is viewed as a safe-haven asset during times of uncertainty and performs well in a low-interest rate environment.
“While gold might struggle near-term without a new, specific policy shock, its underlying uptrend remains firmly in place, supported by central bank buying and, increasingly, real money demand for allocated bullion,” said Adrian Ash, head of research at online marketplace BullionVault.
“In precious metals, the carnival has moved on from safe-haven gold to silver, platinum and palladium as pro-growth, industrial alternatives.”Spot platinum rose 1% to $1,472.20 per ounce, its highest since August 2014. Palladium climbed 1.4% to $1,297.78, its highest since August 2023. Silver was flat at $38.12.
(Reporting by Anushree Mukherjee and Ashitha Shivaprasad in Bengaluru; Editing by Harikrishnan Nair)
