Gold traded near 7-1/2 month low on Friday, headed for another weekly decline, as pressure from strong dollar continued and signs geopolitical tensions from Ukraine are easing eroded haven demand on the metal.
This week, the U.S. dollar remained firm amid expectations the Fed may raise interest rates sooner than predicted and weakness in other major currencies.
The dollar index, which tracks the green currency’s movements versus a basket of six major currencies, is set for its ninth straight weekly gain after setting a new 14-month high of 84.50.
Despite a report released Thursday showing an unexpected rise in U.S. initial jobless claims, later in the day retail sales may signal a rise by the most in four months in August.
Pressure may remain on the shiny metal and other commodities until next week’s policy meeting by the Federal Reserve.
On the political front, the tensions may be easing after Ukrainian President Petro Poroshenko said Russia had withdrawn more than two-thirds of its troops from his country.
However, the U.S. said it will join the EU in imposing a new round of sanctions against Russia, raising concerns Moscow may respond by a similar action against Western countries.
Meanwhile, gold is trading around $1237.67 after hitting a high of $1241.41 and a low of $1232.07.
Among other precious metals, platinum rose to $1362.95 from the day`s opening of $1356.00, palladium inched down to $826.50 and silver soared to $18.60 from $18.50.
Crude oil for November’s delivery fell to $93.32 a barrel, set for its second consecutive weekly drop.