Gold fell amid expectations that Fed will stick to raising interest rates

Gold prices fell on Friday, as markets viewed strong US economic data as an impetus for the Federal Reserve to keep interest rates high for a longer period, but caution before inflation data and the Monetary Policy Committee meeting next week limited gold’s decline.

Spot gold fell 0.2% to $1,926.09 an ounce by 0944 GMT, but moved in a relatively narrow range after falling nearly 1% in the previous session following US data.

US gold futures fell 0.1 percent to $1,927.30.

Data released on Thursday showed the US economy grew faster than expected, but most economists expect a recession by the second half of the year that will be mild and short compared to previous recessions due to an unusually strong labor market.

The dollar index stabilized to a large extent, making gold denominated in the greenback less attractive.

Investors are looking forward to the US Central Bank’s Monetary Policy Committee meeting next week, which will last for two days, and expect interest rates to increase by 25 basis points.

As for other precious metals, spot silver fell 0.7 percent to $23.72 an ounce.

Platinum fell 0.9% to $1,009.38, and palladium lost 0.5%, to $1,668.69.