Market Update: Gold Prices Decline Amidst Economic Signals
Gold registered a decline of 1 percent on Friday, settling at $2,859 per ounce.
Recent economic data from the U.S. indicated that inflation rates in February aligned with forecasts, which subsequently strengthened the dollar.
Market participants anticipate that the U.S. Central Bank will clarify its future monetary policy to prevent inflation from rising unchecked.
As of now, gold is trading at $2,848 per ounce.
According to Jim Wikov, an analyst at Kitco Metals, “The primary factor contributing to the drop in gold prices is the pursuit of profitable profit-taking strategies.”
Wikov noted that the stronger dollar has resulted in diminished demand for purchasing gold.
Conversely, the prevailing U.S. customs policies continue to act as a support mechanism for gold prices in the market.
This week, U.S. President Donald Trump announced that a 25 percent tariff on imports from Mexico will take effect in November.
