Gold prices fell on Friday and were poised for their worst weekly performance in more than a month after the Federal Reserve tempered expectations for rate cuts and on a temporary easing of concerns about an imminent U.S. attack on Iran.
Spot gold slipped 0.4% to $3,355.97 an ounce, and was down 2.2% for the week so far. U.S. gold futures
shed 1% to $3,372.20.
The dollar was up 0.4% so far this week and poised for its biggest weekly gain in over a month, making gold more expensive for holders of other currencies.
U.S. President Donald Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran air war, the White House said on Thursday. Israel and Iran’s air war entered a second week on Friday.
Gold, a safe-haven asset during times of political and economic uncertainty, also tends to thrive in a low interest rate environment.
On Wednesday, the Fed held interest rates in the central bank’s current 4.25%-4.50% range, but slowed its overall outlook for rate cuts in response to a more challenging economic outlook.
Trump reiterated his calls for the Federal Reserve to cut interest rates, saying on Thursday the rates should be 2.5 percentage points lower.
Elsewhere, spot silver slipped 0.7% to $36.12 U.S. per ounce, while palladium lost 0.3% to $1,047.43 U.S.. Platinum fell 1.4% to $1,289.78 U.S., after hitting its highest level in over 10 years in the previous session.
