By Anmol Choubey
(Reuters) – Gold fell 1% on Friday as a result of a stronger dollar and profit-taking, although lingering geopolitical and economic uncertainties, and U.S. Federal Reserve rate cut prospects kept bullion on the right track for a 3rd consecutive weekly rise.
Spot gold was down 1% at $3,015.43 an oz. at 01:43 p.m. ET (1743 GMT). U.S. gold futures settled 0.7% lower at $3,021.40. Bullion has gained 1% to date this week.
Gold, traditionally viewed as a safe-haven investment during times of geopolitical and economic uncertainty, and typically thriving in a low-interest-rate environment, has hit 16 record highs this yr, reaching an all-time peak of $3,057.21 per ounce on Thursday. [GOL/]
“The market is taking a little bit of a breather. There’s some profit-taking at these levels and likewise the dollar is stronger today,” said Marex analyst Edward Meir.
The U.S. dollar rose 0.3%, hitting a two-week high and making greenback-priced bullion dearer for overseas buyers. [USD/]
“Ongoing safe-haven demand, each based on trade concerns and geopolitical risks, continues to be the first driving force,” said Peter Grant, vice chairman and senior metals strategist at Zaner Metals.
U.S. President Donald Trump still intends for brand spanking new reciprocal tariff rates to take effect on April 2.
The Fed held its benchmark rate of interest regular on Wednesday as widely expected, but indicated two quarter-percentage-point cuts before the top of the yr.
Traders are pricing in 71 basis points of easing this yr from the Fed with not less than two rate reductions of 25 bps each, with a cut in July fully priced in, LSEG data showed.
Israel announced an escalation in air, land and sea strikes against Hamas in Gaza to pressure the discharge of remaining hostages, effectively abandoning a two-month ceasefire and launching an all-out air and ground campaign against the dominant Palestinian militant group.
Spot silver slid 1.7% to $32.97 an oz., platinum lost 1.1% to $973.45 and palladium rose 0.1% to $953.14. All three metals were poised for weekly losses.
(Reporting by Anmol Choubey in Bengaluru; Editing by Susan Fenton, Nia Williams and Vijay Kishore)