Gold prices fell on Friday, dropping 0.2% in spot transactions, while U.S. gold futures also declined 0.2%. The yellow metal hit a three-month low before reversing course and ending the day higher, as U.S. economic data eased some concerns regarding the Federal Reserve's signals about potential future interest rate hikes.
Traders now foresee a 72% chance of a 25 basis points interest rate increase in July, after the U.S. central bank indicated in new forecasts that "borrowing costs may still need to rise by up to half a percentage point by the end of the year."
The dollar index stabilized near a one-month low, which limited gold's losses.
Regarding other precious metals, silver remained unchanged at $23.8451 per ounce, while platinum saw little change at $985.55; however, both metals are on track for a weekly loss. Palladium held steady at $1397.90 and is set for its best weekly performance since April.
