Gold prices retreated on Friday after surging to their highest level in nine months earlier on the back of concerns over U.S. political uncertainty and amid safe haven buying in the wake of a terrorist attack in Spain.
Gold futures for December delivery settled down 0.16% at $1,290.27 on the Comex division of the New York Mercantile Exchange, after rising as high as $1,306.9 earlier, the highest level since November 11.
The precious metal reversed course after reports that senior White House advisor Steven Bannon was leaving his post, in what was seen as a positive for the Trump administration’s agenda.
Ongoing uncertainty over the economic agenda of U.S. President Donald Trump and doubts that the Fed will deliver a third rate hike this year have been factors underpinning gold demand.
Gold prices have risen around 11% this year due in large part to the weaker dollar.
The dollar surged to 14-year highs after Trump’s November election on hopes that his plans for fiscal stimulus and tax reform would bolster the economy. The dollar has since given up its post-election gains amid mounting concerns about the administration’s ability to deliver on its agenda.
A weaker U.S. currency makes the dollar-denominated metal cheaper for foreign buyers.
Gold prices rose above the $1,300 level earlier Friday, a key psychological barrier for many investors, after a terrorist attack killed at least 13 people in Barcelona.
Elsewhere in precious metals trading, silver was at $16.98 a troy ounce late Friday, while platinum settled at $981.75 and palladium slid 0.14% to $924.85 a troy ounce.
Among base metals, copper ended at $2.94 a pound, after closing at the highest level since November 2014 on Wednesday amid expectations that ongoing demand from China will continue to support prices.
In the week ahead, investors will be looking ahead to speeches by central bankers at the Fed’s annual central bank symposium in Jackson Hole, Wyoming.
Investors will also be watching U.S. data on housing and durable goods to gauge how it will impact on Fed policy, while the euro zone is to release data on private sector activity.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 21
Canada is to release data on wholesale sales.
Tuesday, August 22
The UK is to release data on public sector borrowing.
The ZEW Institute is to report on German economic sentiment.
Canada is to release data on retail sales.
Wednesday, August 23
ECB President Mario Draghi is to speak at an event in Germany.
The euro zone is to release data on manufacturing and service sector activity.
Dallas Fed President Robert Kaplan is to speak.
The U.S. is to release data on new home sales.
Thursday, August 24
The UK is to release revised data on second quarter growth.
The U.S. is to report on jobless claims and existing home sales.
Meanwhile, the annual meeting of top central bankers and economists in Jackson Hole will get underway.
Friday, August 25
The Ifo Institute is to report on German business climate.
The U.S. is to release data on durable goods orders.
ECB President Mario Draghi is to speak in Jackson Hole.