Gold was flat in early Asian trade on Friday, heading for a weekly fall, weighed down by an overall stronger dollar and solid U.S. economic data.
FUNDAMENTALS
* Spot gold was steady at $3,339.22 per ounce, as of 0038 GMT. U.S. gold futures were flat at $3,344.70. Bullion is down 0.5% this week.
* The dollar index edged 0.3% lower against its rivals on the day, but was heading for its second straight week of gains, making greenback-priced bullion more expensive for other currency holders.
* Data showed on Thursday that U.S. retail sales rose more than expected in June, advancing 0.6% last month after an unrevised 0.9% drop in May.
* U.S. initial jobless claims also were better than expected, dropping 7,000 to a seasonally adjusted 221,000 for the week ended July 12, data showed. Economists polled by Reuters had forecast 235,000 claims for the latest week.
* The strong economic readings showed the world’s largest economy remained on a stable footing, supporting the Federal Reserve’s hesitance in resuming monetary policy easing.
* However, Fed Governor Christopher Waller said he continues to believe the U.S. central bank should cut interest rates at the end of this month amid mounting risks to the economy. * Gold, often considered a safe haven during times of economic uncertainy, tends to do well in a low-interest-rate environment.
* Meanwhile, investors closely watched trade negotiations as U.S. President Donald Trump broadened his tariff war.
* Gold exports from Switzerland jumped 44% month on month in June to the highest level since March as bullion flew back to the vaults in the UK from the U.S. via Swiss refineries, Swiss customs data showed.
* Spot silver edged 0.1% higher to $38.13 per ounce. Platinum rose 0.5% to $1,465.20 and palladium gained 0.5% to $1,286.
DATA/EVENTS (GMT) 1230 US Housing Starts Number June 1400 US U Mich Sentiment Prelim July
(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)
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