Commodities
Gold slips from three-week high as strong dollar weighs
- Bullion up 0.8% this week so far
- U.S. central bank projects two rate reductions in 2025
- Dollar set for strongest weekly performance since mid November
Gold prices retreated from a three-week high on Friday, pressured by a robust dollar, while markets braced for potential economic and trade shifts under U.S. President-elect Donald Trump.
Spot gold eased 0.6% to $2,641.52 an ounce at 01:41 p.m. ET (1841 GMT), after hitting its highest level since Dec. 13 earlier in the session. Bullion is up about 0.8% for the week so far.
U.S. gold futures settled 0.5% lower at $2,654.70.
The new president’s agenda that supports higher tariffs has boosted the dollar and created significant underlying pressure on metal markets, said Nitesh Shah, commodity strategist at WisdomTree.
The dollar index (.DXY), opens new tab was set for its strongest weekly performance since mid-November, making gold pricier for overseas buyers.
“For most of the metals, the slowing of global trade has typically been coupled with a slowing economy and therefore slowing demand for metals,” Shah said, referring to the potential impact of Trump’s proposed trade tariffs.
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