Gold fell to a more than one-week low on Friday, and was set for a weekly decline, as higher energy prices fueled fears of inflation and prolonged higher interest rates, while investors focused on a meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
Spot gold fell 0.6% to $4,619.49 per ounce by 0045 GMT. Bullion was down 1.9% so far this week.
U.S. gold futures for June delivery lost 1.3% to $4,625.70.
The dollar gained over 1% so far this week, making greenback-priced bullion expensive for holders of other currencies. [USD/]
Brent crude oil prices were up 5% this week, hovering above $106 a barrel, as the Iran war drags on, keeping the key Strait of Hormuz largely shut. [O/R]
U.S. President Donald Trump and Chinese President Xi Jinping are set to meet later in the day to wrap up a two-day state visit that has featured pomp and business deals but also a stark warning from Xi that mishandling the Taiwan issue could push U.S.-China relations to “a very dangerous place.”
Federal Reserve Bank of New York President John Williams said on Thursday he does not see a need right now for the central bank to weigh any change in interest rate policy amid the uncertainty created by the Middle East war.
India will restrict imports of gold to 100 kilograms under its advance authorization scheme, which gives Indian exporters certain exemptions, the Directorate General of Foreign Trade said in a statement on Thursday.
On the data front, the number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable labor market even as rising energy prices from the war with Iran drive up inflation.
U.S. retail sales increased solidly for a third straight month in April, though part of the rise in receipts was due to a sharp rise in inflation.
Spot silver fell 1.7% to $82.08 per ounce, platinum lost 0.6% to $2,043.25, and palladium was down 0.1% at $1,435.36.
