Gold Extends Losses for 2nd Week
Gold fell over 1.5% to below $3,270 per ounce on Friday, heading for a 3% weekly decline, its second straight weekly loss, as easing geopolitical tensions and improving global trade prospects reduced demand for safe-haven assets. A fragile ceasefire between Israel and Iran held, and US Commerce Secretary Howard Lutnick said trade frameworks with China and other major partners were nearly finalized, reinforcing risk-on sentiment. Meanwhile, US data showed the core PCE index rose slightly above expectations but remained consistent with subdued inflation, boosting hopes for Fed rate cuts later this year. Consumer sentiment also jumped to a four-month high, and inflation expectations improved. Despite the recent dip, gold remains up over 25% year-to-date and is around $200 below its April record high, still supported by strong central bank buying and anticipation of Fed monetary easing.
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