Gold prices continue to trade sideways

Strong data from the US economy and a decline in global geopolitical tensions have reduced investors' search for safe havens, weakening demand for gold. As a result of these developments, spot gold lost 0.4 percent on Friday, falling to 4,598.52 dollars per ounce. Despite this, gold, which hit a record high of 4,642.72 dollars mid-week, is preparing to close with a gain of nearly 2 percent on a weekly basis.

Capital.com analyst Kyle Rodda stated, "The downward movement in gold began primarily due to the reduced likelihood of US intervention in the social unrest in Iran. Furthermore, data from the US shows that there is no urgent need for an interest rate cut."

Weekly jobless claims, as announced by the US Department of Labor, fell by 9 thousand to a seasonally adjusted 198 thousand. As this figure remained below the previously estimated level of 215 thousand, the dollar index is on track to gain value for the third consecutive week.

The US's largest gold-backed exchange-traded fund, SPDR Gold Trust, announced on Thursday that its holdings increased by 0.05 percent to reach 1,074.80 tons. This level was recorded as the fund's highest asset amount in the last three and a half years.

The volatility in precious metals was not limited to gold. Spot silver retreated to 90.70 dollars per ounce, a 1.8 percent drop, after seeing its all-time high in the previous session. Looking at the week as a whole, it achieved a gain of over 13 percent. Spot platinum fell 2.8 percent to 2,342.14 dollars. Palladium, after testing its lowest level in a week, stood at 1,759.07 dollars with a 2.3 percent decrease.

News Source: 12punto