Gold heads for a weekly decline in light of strong US economy

Gold rose slightly today, Friday, as the dollar retreated from its high levels, but the precious metal is still on its way to record a weekly decline, with investors focusing on the increasingly strong US data.

According to Reuters, gold rose in spot transactions 0.3% to $1,925.14 per ounce by 0545 GMT, but it is heading to record a weekly decline of 0.7%, and US gold futures rose 0.4% to $1,949.40.

“If it ends up that the Fed needs to stick to (its interest rate stance) for a longer period, that will be the worst thing ever for gold because it means higher bond yields and the dollar,” said Ilya Spivak, head of the global macroeconomics unit at Tasty Live. “

The dollar fell 0.2%, but it is heading towards achieving the longest series of weekly gains in nine years, supported by a group of strong American economic data.

Data this week showed that the US services sector gained strength in August, while unemployment claims unexpectedly fell last week to their lowest level since February.

According to the CME Group’s FeedWatch service, market traders expect approximately 93% that the Federal Reserve will hold interest rates at its meeting on September 19-20, but they are betting on a 41% chance that it will raise interest rates again before 2024.

As for other precious metals, silver rose in spot transactions 0.6% to $23.09 per ounce and platinum increased 0.4% to $907.04, but they are heading towards their worst weekly performance since June 23.

Palladium rose 1% to $1,224.03, on its way to breaking a series of losses that lasted 3 weeks.