Gold retreated on Friday as the U.S. dollar regained ground and trimmed bullion's post-election rally. The metal remains up more than 5% for the week. Traders now look to the U.S. nonfarm payrolls report for clues on the interest-rate outlook.
Gold prices retreated on Friday as the U.S. dollar regained ground, trimming bullion's post-election rally. At 01:24 ET, spot gold fell 1% to $4,048.97 an ounce. U.S. gold futures declined 1.4% to $4,057.95.
Other metals also slipped. Silver slipped 0.5% to $51.5215 an ounce, while platinum lost 0.6% to $1,510.78. The U.S. Dollar Index rose 0.2% to 101.80.
Democratic sweep drives a weekly gain above 5%
Bullion has gained more than 5% this week after the Democratic sweep of Congress sent the dollar and Treasury yields lower. However, gold remains vulnerable to equity-market liquidations as investors sell assets to cover losses elsewhere.
Technology stocks extended their decline for a third session on Friday. The selloff followed concerns that Democratic control of Congress could bring tighter regulatory scrutiny of artificial intelligence companies. The resulting flight to safer assets lifted demand for U.S. Treasuries and pushed yields to their lowest levels since early September.
ANZ weighs fiscal limits against central-bank buying
ANZ analysts said expectations of tighter fiscal constraints under a Democratic-controlled Congress had helped pull Treasury yields lower. However, they added that reduced government borrowing could also weaken one source of gold demand.
They added that physical buying remained robust. Central banks added a net 321t to their reserves in the third quarter, the fastest pace since late 2024.
Analysis lists $4,112 as near-term resistance
A separate Investing.com analysis of gold futures puts the Daily VC PMI near-term resistance at approximately $4,112. The same analysis marks the Daily Buy 1 level at $4,069 as the first important support.
Traders will now look to the U.S. nonfarm payrolls report later on Friday for fresh clues on economic momentum and the interest-rate outlook.
Sources: Commodities & Futures News, Commodities Analysis & Opinion
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