Gold is heading for its second consecutive weekly decline

Gold prices rose during trading today, Friday, the twenty-sixth of January, but they are heading towards recording the second weekly losses in a row, amid the rise of the dollar supported by positive economic data.

The US economy grew more than expected during the last quarter of 2023, by about 3.3%, supported by personal consumption expenditures.

OANDA’s chief market analyst for the Asia-Pacific region, Kelvin Wong, said that the US economy is still showing resilience, which limits gold’s strength.

Regarding the performance of the US dollar, the index rose throughout the week as it traded near the highest level in a month and a half, which makes the yellow metal less attractive to holders of other currencies.

Data on personal income and consumer spending, as well as data on the US Federal Reserve’s preferred inflation index, are scheduled to be released later today, less than one week before the US Federal Reserve meeting, which is expected to witness interest rate stabilization.

As for trading, gold futures rose by about 0.3% to $2,022.9 per ounce, but the yellow metal is heading towards weekly losses of 0.4% for the current week.