Investing.com - Gold prices fell on Friday as the stronger dollar and expectations that the Federal Reserve may raise interest rates earlier pressured the precious metal lower.
Gold for June delivery on the Comex division of the New York Mercantile Exchange settled at $1,235.0 a troy ounce, down 1.22%.
The precious metal ended the week down 0.31%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.52% to 95.11.
A stronger dollar tends to weigh on gold, which is denominated in the U.S. currency and becomes more expensive for many buyers when the dollar rises.
Speculation that the Fed could raise interest rates sooner than expected also weighed on gold after data on Thursday showing that U.S. jobless claims fell to the lowest level in 43 years last week.
Lower interest rates tend to help gold, as the metal pays its holders nothing, but it struggles to compete with yield-bearing investments when interest rates rise.
Gold prices posted their strongest quarterly gains in 30 years in the first quarter of 2016 as global growth concerns and investor uneasiness about negative-interest-rate policies in Japan and Europe bolstered investor appetite for bullion.
Gold’s gains have slowed since then but the precious metal is still up almost 17% for the year to date.
In the week ahead, investors will also be focusing on the outcome of Wednesday’s Fed meeting for clues on the path of future interest rate increases.
Thursday’s preliminary data on U.S. first quarter economic growth will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 25
Markets in Australia will remain closed for the Anzac day holiday.
The Ifo Institute for Economic Research is to release data German business climate.
The U.S. is to release data on new home sales.
Tuesday, April 26
The U.S. is to release data on durable goods orders and a private sector report on consumer confidence.
Bank of Canada Governor Stephen Poloz is to speak at an event in New York.
Wednesday, April 27
New Zealand is to release data on the trade balance.
Australia is to report on consumer price inflation.
The U.K. is to release a first readout of first quarter gross domestic product.
The Federal Reserve is to announce its benchmark interest rate and publish its rate statement.
Thursday, April 28
The Reserve Bank of New Zealand is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.
The Bank of Japan is to hold its next monetary policy review. The rate announcement is to be followed by a press conference.
Japan is also to release data on household spending, inflation, retail sales and unemployment.
In the euro area, Germany and Spain are to release preliminary data on inflation, as well as reports on unemployment.
The U.S. is to publish its initial estimate of first quarter economic growth and the weekly report on initial jobless claims.
Friday, April 29
Markets in Japan will be closed for a national holiday.
Australia is to report on producer price inflation.
The euro zone is to publish preliminary reports on consumer inflation and first quarter growth.
Germany is to report on retail sales.
Swiss National Bank Chairman Thomas Jordan is to speak at an event in Bern.
Canada is to publish its monthly report on GDP.
The U.S. is to round up the week with a report on personal spending and revised data on consumer sentiment.