WASHINGTON (dpa-AFX) - Gold prices drifted down on Friday, extending losses to a sixth straight session, as comments from Fed Chair Jerome Powell raised uncertainty about any aggressive rate cut move by the central bank.
Powell said the U.S. central bank does not need to rush to lower interest rates and can approach decisions carefully, given persistent inflationary pressures.
He lauded the economy as 'remarkably good', the labor market as 'solid' and noted that inflation was 'running much closer' to the bank's target.
Gold's decline was also due to concerns that U.S. President-elect Trump's proposed policies on trade and tariffs may fuel inflation and keep interest rates elevated higher for longer.
The dollar index, which dropped to 106.33 in the European session, climbed to 106.96 around mid morning but retreated to 106.57 later on, recording a marginal loss.
Gold futures for November ended down $2.50 or about 0.1% at $2,565.70 an ounce. Gold futures shed 4.53% in the week.
Silver futures for November closed down $0.137 or 0.45% at $30.371 an ounce. Silver futures recorded a weekly loss of 3.15%.
Copper futures for November dropped to $4.0545, down $0.0185 or 0.45% from the previous close.
In economic news, the Commerce Department said retail sales rose by 0.4% in October after growing by an upwardly revised 0.8% in September. Economists had expected retail sales to climb by 0.3% compared to the 0.4% increase originally reported for the previous month.
The Labor Department also released a report showing an unexpected 0.3% increase by import prices in the U.S. in the month of October, which may added to recent worries about sticky inflation.
Meanwhile, the Fed released a report showing industrial production decreased in October, falling by 0.3%, as the effects of recent hurricanes and the since-resolved strike at Boeing (BA) continued to weigh on growth.
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