Gold traded flat in Asian markets on Friday, weighed down by a stronger U.S. dollar and a rise in investor risk appetite following upbeat American retail sales figures. The precious metal was on track for a modest weekly decline, with growing confidence that the Federal Reserve will keep interest rates elevated dampening safe-haven demand.
By 05:16 GMT, spot gold held steady at $3,339.61 per ounce, while September gold futures hovered around $3,344.62. Despite recent gains, the yellow metal was headed for a 0.5% drop on the week, snapping a two-week winning streak.
Fed Outlook, Strong Retail Data Curb Safe-Haven Demand
Robust U.S. economic data — particularly stronger-than-expected June retail sales — reinforced views that the Fed may hold off on rate cuts in the near term. This has buoyed the dollar, which climbed roughly 0.7% this week, marking its second consecutive weekly gain.
Risk appetite also climbed on the back of positive corporate earnings, further sidelining demand for gold and other traditional hedges.
Uncertainty around President Donald Trump’s trade tariff threats provided only limited support for gold, as markets largely brushed off the geopolitical risk in favor of riskier assets.
Platinum Extends Rally, Outshines Peers
While gold and silver remained under pressure, platinum emerged as the standout performer. Spot platinum surged to $1,465.43 per ounce, up 5.5% for the week, after breaking through the critical $1,400 resistance level. The metal is now trading at levels not seen in over 11 years.
Analysts at ANZ said this breakout could signal further upside for platinum, supported by expectations of tightening supply and firming industrial demand.
Platinum — along with silver — has significantly outperformed gold in 2025, as investors rotate into less expensive alternatives amid elevated bullion prices.
Broader Metals Mixed Amid Dollar Strength
Elsewhere in the metals space, spot silver slipped to $38.1225 per ounce, marking a 0.5% weekly decline, as dollar strength continued to weigh on prices.
Copper prices were little changed this week. Benchmark contracts on the London Metal Exchange rose 0.3% to $9,706.50 per ton, while COMEX copper futures ticked up 0.6% to $5.5320 per pound, both showing sideways momentum.
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