Gold prices decline amid anticipation of US interest rate path

Gold prices fell today, Friday, amid a rise in the dollar, at a time when weak US economic data reinforced expectations that the Federal Reserve (the US central bank) will temporarily suspend the monetary tightening cycle in the wake of another interest rate hike next month.

According to Reuters, the spot gold price fell 0.4 percent to $1996.92 an ounce by 0612 GMT, after rising 1 percent on Thursday. The yellow metal fell by 0.3 percent from the beginning of the week

US gold futures also fell 0.7 percent to $2,005.70

Data released on Thursday showed more Americans are filing for unemployment benefits. Separate data also showed that factory activity in states located in the middle of the US coast on the Atlantic Ocean fell to the lowest level in almost three years in April.

Cleveland Federal Reserve Bank President Loretta Mester said Thursday that the Fed will make more interest rate hikes, but noted that the cycle of aggressive action to raise the cost of borrowing to curb inflation is coming to an end.

High interest rates increase the opportunity cost of owning non-returnable gold bullion

As for other precious metals, silver fell in spot transactions by 0.5 percent, to $ 25.17 an ounce, and is heading to record the first weekly loss in six weeks.

Platinum fell 0.2% to $1,090.91, while palladium rose 0.3% to $1,590.65. The two metals are heading for a rise this week.