Gold prices on Friday slipped to their lowest in two weeks as the US dollar advanced on the back of strong US economic data, putting the metal on track for its biggest weekly decline in a month.
Spot gold fell 0.8 per cent to $US1,276.25 per ounce, having dropped to its lowest since May 3 at $US1,274.51 earlier in the session.
The metal was down 0.7 per cent for the week, which was set to be its biggest weekly decline since April 19.
US gold futures settled down 0.82 per cent at $US1,275.70 an ounce.
“The (US) dollar has strengthened due to relatively strong US economic reports and little relaxation in geo-political tensions, all these combined has put downward pressure on gold prices,” said Jeff Klearman, portfolio manager at GraniteShares.
The US dollar index gained, holding near a two-week high against a basket of currencies, making gold more expensive for holders of other currencies.
US consumer sentiment jumped to a 15-year high in early May amid growing confidence over the economy’s outlook, data showed on Friday.
Spot gold fell 0.8 per cent on Thursday, its biggest one-day percentage decline since mid-April, as strong economic data from the United States spurred investors towards riskier assets.
The falls in gold over the past couple of sessions has dented the technical picture for the metal, analysts said.
“Bullion prices had broken the bearish trendline that had marked the last few months,” Carlo Alberto De Casa, chief analyst with ActivTrades, wrote in a note.
“A clear recovery to the $US1,300 level, and prices holding above this psychological threshold, would confirm the supportive scenario seen in the last two weeks, while a fall below $US1,280 would be seen as a negative element.”
Meanwhile, world share markets pulled back as trade tensions were renewed after Chinese media took a hardline approach to the tariff dispute between the United States and China.
“Despite the risk-off sentiment in the market we are not seeing any underline support coming (for gold). However the geo-political tensions with Iran and ongoing trade talks with China could provide some support going forward,” said Alex Turro, market strategist at RJO Futures.
Among other metals, silver dropped one per cent to $US14.41 an ounce, after hitting its lowest since December 6 at $US14.38 an ounce.
Silver was also on track for a decline of more than two per cent for the week, its biggest since March 1.
Platinum dipped 1.9 per cent to $US813.50 per ounce, having hit a more than two-month low at $US812.50 earlier in the session.
Palladium slipped 1.4 per cent to $US1,312.51 an ounce.
The metal used in catalytic converters in car exhaust systems has slumped about 19 per centfrom a record high of $US1,620.53 hit in March.
Both platinum and palladium were set to record weekly falls, with platinum on course for its biggest such drop since mid-August 2018.