BENGALURU: Gold prices dipped on Friday, weighed down by a strengthening US dollar and optimism about progress in trade talks between the US and the European Union. As of 1:50 p.m. Saudi time, spot gold was down 0.7 percent to $3,343.0 per ounce. US gold futures declined by 0.9 percent to $3,344.50. The US dollar index recovered from a more than two-week low, making gold more costly for foreign purchasers, while benchmark 10-year US Treasury rates increased.
A revival in risk appetite, spurred by optimism about prospective trade discussions and better-than-expected unemployment claims, reinforces the idea that the US Federal Reserve is unlikely to lower rates, is putting pressure on gold, according to Ricardo Evangelista, senior analyst at trading company ActivTrades. There is still some uncertainty.. with a strong support level around $3,300, I see the potential for gold prices to rise if new episodes of volatility occur,” he said.
The European Commission stated on Thursday that a negotiated trade agreement with the United States is within reach, while EU members voted to approve counter-tariffs on €93 billion euros ($109 billion) in US goods in case the talks fail. The number of Americans submitting new claims for unemployment benefits fell to a three-month low last week, indicating solid labor market conditions.
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