Gold prices fell on Friday as the dollar strengthened and dismal U.S. economic data bolstered predictions that the Fed will stop tightening after one more rate hike next month.
Gold fell 0.4% to $1,996.92 per ounce at 0612 GMT after climbing 1% on Thursday. Bullion has lost 0.3% this week.
U.S. gold futures fell 0.7% to $2,005.70.
“We really need to see some bigger pieces of information to give it that directional conviction,” said Tastylive global macro head Ilya Spivak.
More Americans claimed unemployment benefits on Thursday. In addition, separate statistics showed mid-Atlantic factory activity falling to a nearly three-year low in April.
On Thursday, Cleveland Fed President Loretta Mester indicated the Fed would raise rates again, but the aggressive approach to lower inflation over the previous year is nearing an end.
Rate hikes make non-interest-bearing gold less attractive.
“An interesting window into what’s going on, then another big break until we see the U.S. GDP and PCE numbers next week,” Spivak said of the PMI data anticipated later in the day.
Markets are pricing in an 81.2% likelihood of 25 basis points raise in May, which lifted the dollar for the first time in almost a month and made bullion more expensive for foreign purchasers.
According to Reuters technical expert Wang Tao, gold may bounce below $2,018.
Silver fell 0.5% to $25.17 per ounce, its first weekly decrease in six.
Platinum dipped 0.2% to $1,090.91, while palladium increased 0.3% to $1,590.65. Both metals rose this week.
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