Prices of the yellow metal dropped almost 1.5% in the prior session, rallying in tandem with a sharp decline in stock markets as feeble corporate earnings and softer-than-expected economic data pushed up worries over an imminent economic deceleration.
Hawkish statements from the Federal Reserve also weighed on sentiment. Fed Vice Chair Lael Brainard stated on Thursday that interest rates would require to stay high despite signs of easing inflation, given that price pressures are still trending close to 40-year highs. Her remarks mirrored similar promises from other Fed officials this week.
Prices Are Retreating
Spot gold dropped 0.1% to $1,930.90 an ounce. Meanwhile, gold futures steadied at about $1,932.35 an ounce by 19:40 ET (00:40 GMT). Both instruments were trading close to their highest level after April 2022 and should add approximately 0.6% this week.
Gold prices have been pulling since data revealed a sustained downturn in U.S. inflation, which is potential to request less hawkish actions by the Fed this year. The prospect of more diminutive rate hikes significantly relieves bullion prices, which a hawkish Fed rattled in 2022.
In recent weeks, the prospect of a global recession also increased safe-haven demand for gold amid multiple prophecies that major economies could contract this year.
Among industrial metals, copper prices withdrew in early Asian trade but were also headed for a fifth straight week of gains amid continued optimism over an economic comeback in China.