Investing.com - Gold fell in Asia on Friday in holiday-thinned trade as many markets shut to mark Good Friday.
On the Comex division of the New York Mercantile Exchange, gold for May delivery eased 0.24% to $1,213.80 a troy ounce.
Silver futures for May delivery fell 0.37% to $15.215 a troy ounce, while copper futures for May delivery rose 0.07% to $2.237 a pound.
Overnight, after dropping to near one-month lows on Thursday, amid continued gains in the dollar, gold pared earlier losses following a soft monthly durable goods report, which slowed some momentum from an improving U.S. economy.
Gold continued its slide on Thursday morning when Federal Reserve of St. Louis president James Bullard hinted that the U.S. central bank's next rate hike could be looming if the economy demonstrates continued improvement over the next few weeks. While delivering a speech in New York, Bullard noted that the Fed could raise rates when it meets again in late-April and its next rate hike "may not be far off" if inflation continues to increase and unemployment declines from December levels.
Bullard's comments come in the wake of a wave of hawkish statements by his colleagues at the Federal Open Market Committee (FOMC) earlier this week. On Wednesday, Philadelphia Fed president Patrick Harker also recommended that the FOMC raise rates as early as April, while suggesting as many as three rate hikes by the end of the year. Harker's statements followed comparable hawkish positions from San Francisco Fed president John Williams and Atlanta Fed president Dennis Lockhart at the start of the week.
They also jive with comments from Janet Yellen at a press conference last week when the Fed chair noted that the central bank should remain cautious with future rate hikes given persistent risks with global economic and financial conditions. At the meeting, the Fed held its benchmark Federal Funds Rate at its current targeted range between 0.25 and 0.50%. The rate continues to linger around 0.37%.
Any rate hikes this year are viewed as bearish for gold, which struggles to compete with high-yield bearing assets in rising rate environments.
Further tightening by the Fed is also considered bullish for the dollar, as foreign investors pile into the greenback in order to capitalize on more favorable rates.