Gold steady, heads for weekly losses

Gold prices stabilized on Friday but are on track for weekly losses, as the dollar remains strong and strong US economic data reinforced expectations of a delay to any imminent monetary easing by the Federal Reserve.

Spot gold was trading at $3,337.60 per ounce by 05:03 GMT, while US gold futures fell 0.1% to $3,343.10. Gold has thus fallen about 0.5% since the beginning of the week.

Despite the 0.1% decline in the dollar index against a basket of currencies on Friday, it is on track for its second consecutive weekly gain, increasing pressure on gold by raising its purchase cost for holders of other currencies. Kelvin Wong, senior market analyst at OANDA, said that US data continues to show economic resilience, adding: “Market participants are likely still carefully examining conditions, and we do not expect the Federal Reserve to be strongly dovish at this stage.”