- Gold's worst weekly performance since November 2024
- Dollar headed for fourth straight weekly gain
- Price pullback spurs gold demand in top Asian hubs
May 16 (Reuters) - Gold prices dropped on Friday and were poised for their steepest weekly decline in six months, as a stronger dollar and waning trade war concerns dampened its appeal as a safe-haven asset.
Spot gold XAU= shed 0.6% to $3,221.19 an ounce as of 0624 GMT. Bullion has lost more than 3% so far this week and is set for its worst weekly performance since November 2024.
U.S. gold futures GCcv1 fell 0.1% to $3,224.40.
The dollar .DXY has gained 0.2% so far this week and is headed for its fourth straight weekly gain, making greenback-priced gold more expensive for overseas buyers. USD/
"Gold prices faced heavy selling pressure this week as markets cheered (a) de-escalation in the U.S.-China trade (war)," said Ilya Spivak, head of global macro at Tastylive.
Earlier this week, the U.S. and China agreed to temporarily slash the harsh tit-for-tat tariffs imposed in April.
Meanwhile, U.S. producer prices fell unexpectedly in April and retail sales growth slowed, data showed.
Consumer prices rose less than expected last month, a report showed.
On Thursday, Federal Reserve Governor Michael Barr said the U.S. economy is on solid footing with inflation headed for the central bank's 2% target, but trade policies have clouded the outlook.
Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low-rate environment.
"On the plus side, gold price dips continue to attract buyers, which shows that the precious metal remains a favoured asset, with the global growth and inflation outlooks still looking rather murky," said KCM Trade Chief Market Analyst Tim Waterer.
Physical gold demand improved across most key Asian hubs this week as a pullback in global prices sparked buying interest. GOL/AS
Spot silver XAG= fell 0.7% to $32.44 an ounce, platinum XPT= dropped 0.3% to $986.35 and palladium XPD= lost 1.2% to $957.20.
Spot gold price in USD per oz
Related Articles
Nvidia Q1 FY2026 Earnings Preview: Navigating Peak AI Optimism Amid Valuation Gravity
But as the momentum on earnings starts to normalize and valuation squeezing gets closer, the Q1 print can be the fulcrum for how markets discern hardness from exuberance.
Container ship owners swamped as US-China trade detente revives demand
LOS ANGELES/HONG KONG, May 16 (Reuters) - Container ship bookings for China-to-U.S. cargo have surged since the countries declared a 90-day truce on punitive tit-for-tat tariffs last weekend, operators said, spawning traffic jams at Chinese ports and factories that could take weeks to clear.
Tesla Q1 2025 Earning Report Review: Autonomous Driving and Robotics Lead Future Growth
TradingKey - Tesla's Q1 2025 earnings results revealed short-term financial pressure, with core data lower than market expectations, and both revenue and profitability facing challenges. Against the backdrop of sales and profit pressure, Musk remains confident in Tesla's future.
TSMC's Q1 2025 Earning: Technological leadership and AI demand drive continued growth in performance
For investors, TSMC's current valuation has not yet fully reflected its growth potential in the AI chip market. It is recommended to pay attention to its progress in 2nm process mass production and CoWoS capacity expansion.
TSMC 2025 Q1 Outlook: AI-Driven Growth and Supply Chain Breakthrough Amid Tariff Pressures
As the world's leading semiconductor foundry, TSMC's Q1 2025 revenue reached NT$839.254 billion, a year-on-year increase of 41.6%, exceeding market expectations and in line with the company's guidance of NT$820 billion to NT$846.24 billion.
