Gold prices edged lower on Friday as the U.S. dollar gained strength, making the precious metal more expensive for holders of other currencies. Spot gold fell to $1,157.30 an ounce, while U.S. gold futures also declined.
The dollar index, which measures the greenback against a basket of currencies, rose, putting pressure on gold. A stronger dollar typically leads to lower gold prices, as the metal becomes less attractive to investors using other currencies.
Investors are closely monitoring economic data and central bank policies for further cues. The market is anticipating potential interest rate hikes by the Federal Reserve, which could further boost the dollar and weigh on gold.
Other precious metals also saw some movement. Silver fell, platinum decreased, and palladium also experienced a decline.
Factors Influencing Gold Prices:
- Dollar Strength: A stronger dollar typically weakens gold.
- Interest Rate Expectations: Anticipation of rate hikes can pressure gold.
- Economic Data: Key economic indicators influence investor sentiment.
