Gold prices fell in European trade on Friday, resuming losses and trading once more above $3300 under pressure from the stronger dollar against a basket of major rivals.
Now investors await the US consumer consumption expenditure report later today, expected to provide important clues on the future path of Fed rate cuts.
Prices
Gold prices fell 0.9% today to $3287 an ounce, with a session-high at $3322.
On Thursday, gold rose 0.9%, the first profit in four days as the US appeals court stayed Trump’s reciprocal tariffs.
US Dollar
The dollar index rose 0.4% on Friday, resuming gains against a basket of major rivals.
A stronger dollar makes the greenback-denominated gold futures costlier to holders of other currencies.
It comes after a week of strong US data, which reduced concerns about a US recession this year.
US Rates
San Francisco Fed President Mary Dale said on Thursday that policymakers are still capable of delivering two rate cuts this year, but inflation must remain stable near the 2% target.
According to the Fedwatch tool, the odds of a 0.25% June interest rate cut stood at 2%, while the odds of a July rate cut stood at 25%.
Markets now expect 50 basis points of total rate cuts by the end of the year, starting October.
SPDR
Gold holdings at the SPDR Gold Trust rose 4.59 tons yesterday to a total of 930.20 tons, the highest since May 13.
