Gold Slips as Strong US Data Strengthens Dollar

Highlights:

• Spot gold dipped 0.2% to US$3,741.21 per ounce at the time of writing, but stayed up 1.6% for the week.
• The firmer US dollar put pressure on gold prices as markets awaited a key US inflation report.
• Silver slipped, platinum hit a 12-year high, and palladium also gained, all set for weekly advances.

Dollar gains weigh on bullion

Gold prices eased on Friday as better-than-expected US economic data dampened hopes for near-term interest-rate cuts by the US Federal Reserve, lifting the greenback ahead of a key American inflation report. At the time of writing, spot gold was down 0.2% at US$3,741.21 per ounce, though the metal remained 1.6% higher for the week. December US gold futures stayed unchanged at US$3,771.30 per ounce as the US dollar index hovered close to a three-week high, making bullion more expensive for foreign investors and weighing on prices in the near term.

Market reacts to trade and rate concerns

Investors grew cautious after the robust US data raised doubts about how soon the Fed might begin cutting interest rates. A stronger dollar often reduces demand for gold by increasing its relative cost to buyers using other currencies. Adding to market jitters, former US president Donald Trump on Thursday (Friday AEST) announced a new round of tariffs on a wide range of imported goods effective October 1, fuelling uncertainty across global commodity markets.

Precious metals mixed

Other precious metals saw mixed performance. Spot silver slipped 0.6% to US$44.96 per ounce, while platinum climbed 1.6% to US$1,553.35, hovering near a 12-year high. Palladium advanced 1.4% to US$1,267.13 per ounce. Despite the day’s pullback in silver, all three metals were on track to notch weekly gains, reflecting steady industrial and investment demand. Analysts say gold’s short-term movement will hinge on upcoming US inflation data, which could provide further insight into the Fed’s monetary-policy path and the greenback’s strength.

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