Spot gold traded slightly lower around $1747 an ounce on Friday after touching a 5-week high of $1758 an ounce in the previous session. Still, the yellow metal is on track for a 1% weekly gain, the first rise in 3 weeks, as both the dollar and Treasury yields retreat and initial jobless claims unexpectedly rose for the 2nd week. Also, the Federal Reserve reiterated expectations it would not taper anytime soon and that interest rates would remain low for some time despite a stronger economic outlook. Looking ahead, gold is facing pressure from strong economic data coming from the US and China and an accelerating vaccination rollout while Fed’s dovish tone, fiscal stimulus and lockdowns in Europe and in some parts of Asia could boost safe-haven demand for bullion.
