Gold prices moved lower again on Friday, extending losses for a fourth consecutive session as stronger U.S. economic indicators lifted the dollar and reduced expectations that the Federal Reserve will cut interest rates soon. Investors were also watching developments from talks between U.S. President Donald Trump and Chinese President Xi Jinping.
Spot gold dropped 1.6% to $4,578.74 an ounce by 03:05 ET, or 07:05 GMT. U.S. gold futures fell 2.1% to $4,585.87 an ounce.
Bullion was on course for a weekly decline of about 3%.
Elsewhere in precious metals, silver slid 5.2% to $79.13 an ounce, while platinum fell 2.3% to $2,013.46 an ounce.
Dollar Strength Adds Pressure to Bullion
The U.S. Dollar Index advanced 0.3% during Asian trading, touching its highest level in two weeks. The index was set to gain more than 1% for the week.
Stronger-than-forecast U.S. data released during the week added to concerns that inflation remains sticky, particularly as oil prices climbed amid Middle East tensions. Dollar strength tends to pressure gold because it makes the metal more expensive for international buyers.
The latest data showed U.S. producer prices rose in April at the fastest annual pace in four years, while consumer inflation also exceeded expectations. Retail sales figures indicated that consumer demand remained firm despite higher energy prices.
Those figures prompted traders to scale back expectations for Federal Reserve rate cuts this year, while some investors started to price in the risk of further policy tightening.
Although gold is commonly viewed as protection against inflation and geopolitical stress, higher interest rates can reduce its appeal because the metal does not offer income.
Trump-Xi Summit Brings Constructive Tone but Few Details
Markets closely followed the Beijing meeting between Trump and Xi for clues on trade, diplomacy and the Iran conflict. Both governments described the discussions positively, but the talks ended without major policy announcements.
Chinese state media said the two sides had reached “important consensus” on keeping economic and trade ties stable and agreed to improve coordination on global issues.
Trump previously described the U.S.-China relationship as “very strong” and said Xi had offered support regarding Iran and the Strait of Hormuz. Beijing also urged the reopening of Hormuz and called for dialogue to reduce Middle East tensions.
Gold was also pressured after Trump wrote on Truth Social that “the military decimation of Iran (to be continued!).” The statement highlighted the possibility of further escalation in the Iran war.
Oil price gains tied to disruption in the Strait of Hormuz have made the outlook for gold more complicated by increasing fears that global inflation could stay elevated for longer.
London Metal Exchange benchmark copper futures fell 2.6% to $13,644.22 a ton, while U.S. copper futures dropped 3.1% to $6.37 a pound.
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