Gold prices fall over 1% as dollar gains ground

Gold bars

Gold prices dropped more than 1% on Friday amid a rise in the US dollar and investor anticipation of any developments in the ongoing US-China trade tensions.

"The US should ... thoroughly remove all unilateral tariffs" if it "really wants to solve the problem,” said Commerce Ministry spokesman He Yadong, calling reports of ongoing negotiations “groundless.”

June gold futures fell 1.37%, or $45.80, to $3,302.80 per ounce at 8:58 a.m. Makkah time. Spot gold prices also declined by 1.8%, or $60.35, to $3,289.08 per ounce.

July silver futures dropped 0.57% to $33.63 per ounce, and spot platinum prices fell 0.97% to $965.90.

The US Dollar Index, which measures the greenback’s performance against a basket of six major currencies, rose 0.44% to 99.81 points.

Amid investor anticipation of signals on the future of US interest rates, Cleveland Fed President Beth Hammack said she thinks policymakers need to be patient rather than preemptive in assessing how tariffs will impact inflation and growth.

“If we have convincing data by June, then I think you’ll see the committee move if we know which way to move at that point,” she said.