Gold Nears Four-Month Lows

Gold settled near its lowest levels in four months on Friday, as investors awaited important U.S. inflation data later in the day following a series of strong economic figures and hawkish comments from Federal Reserve officials, which increased bets on another interest rate hike. Spot gold remained stable at $1,907.78 per ounce by 03:16 GMT, while U.S. gold futures dropped 0.1% to $1,915.80 per ounce. The dollar index hovered near a two-week high reached during the previous session, which raises gold prices for holders of other currencies. Data released during the week painted a picture of a resilient U.S. economy, easing some fears of an imminent recession but increasing expectations that the U.S. central bank would resume tightening monetary policy. Gold prices usually rise during times of economic or financial uncertainty, but higher interest rates diminish the appeal of the non-yielding yellow metal.