Gold prices held close early Friday to near six-week lows hit in the previous session, as the dollar firmed after upbeat US economic data supported the Federal Reserve’s resolve for steady interest rate hikes over the next year.
Fundamentals
Spot gold was up 0.1 per cent to $1,183.58 as of 0103 GMT. On Thursday, the metal fell about 1 per cent and touched its lowest since Aug. 17 at $1,181.61 an ounce.
Spot gold is down about 1.3 per cent for the week, on track for its fourth weekly decline in five.
US gold futures were flat at $1,187.30 an ounce.
The dollar stood tall against its peers on Friday, and hovered near a nine-month high versus the yen.
US economic growth accelerated in the second quarter at its fastest pace in nearly four years as previously estimated, putting the economy on track to hit the Trump administration’s goal of 3 per cent annual growth.
The US economy does not face a large chance of a recession in the next two years and the Fed plans to keep gradually raising interest rates, Fed Chairman Jerome Powell said on Thursday.
New orders for key US-made capital goods fell in August after four straight months of strong gains and the goods trade deficit widened sharply, prompting some economists to significantly lower their economic growth estimates for the third quarter.
President Donald Trump’s accusation of Chinese meddling in upcoming US elections marks a new phase in an escalating pressure campaign against Beijing that Washington is pursuing on multiple fronts, senior US officials said on Thursday.
Italy’s government on Thursday targeted the budget deficit at 2.4 per cent of gross domestic product for the next three years, defying Brussels and marking a victory for party chiefs over economy minister Giovanni Tria, an unaffiliated technocrat.
