Spot gold held steady at $3,337.60 per ounce as of 5:03 AM GMT.
US gold futures slipped 0.1% to $3,343.10 per ounce. Bullion prices have fallen about 0.5% per ounce this week.
In India, the price of 24 karat gold stood at ₹99,380 for 10 grams, 22 karat gold at ₹91,100 per 10 grams, and 18 karat gold at ₹74,540 per 10 grams, according to Goodreturns data.
The dollar index eased 0.1% but was on track for its second straight weekly gain. A firm dollar makes gold costlier for buyers holding other currencies.
Kelvin Wong, Senior Market Analyst at OANDA, said, “We are starting to see data coming in that is still supporting a rather vigilant U.S. economy and potentially market participants are still looking at a situation where we are not expecting a very dovish Fed.”
Recent US data showed retail sales rose 0.6% in June after a 0.9% drop in May. Jobless claims fell by 7,000 to 221,000 for the week ended July 12, beating expectations.
The upbeat numbers reinforced the Fed’s cautious stance on cutting interest rates. However, Fed Governor Christopher Waller indicated a possible rate cut at the end of this month as risks to the economy remain.
Gold usually benefits when interest rates fall, as it lowers the opportunity cost of holding the metal.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said, “The stronger dollar and cautious sentiment are keeping the gold rally on pause for now. Price movement is expected to remain volatile with a broader range seen between ₹96,000–₹98,500 per 10 grams.”
–With Reuters inputs
