monsitj/iStock via Getty Images Gold futures fell for the fourth time in five sessions on Friday, closing below $5,100/oz, pressured by a stronger dollar, rising oil prices, and uncertainty around Federal Reserve policy. The dollar flirted this week with its strongest levels YTD as surging energy prices sparked worries about Europe's import-dependent economy and drove investors toward the safety ...
monsitj/iStock via Getty Images Gold futures fell for the fourth time in five sessions on Friday, closing below $5,100/oz, pressured by a stronger dollar, rising oil prices, and uncertainty around Federal Reserve policy. The dollar flirted this week with its strongest levels YTD as surging energy prices sparked worries about Europe's import-dependent economy and drove investors toward the safety of the greenback, making dollar-priced bullion less affordable for other currency holders. The dollar "has strengthened due to its safe-haven status, particularly as rising oil prices benefit the U.S., which is a net energy exporter," ANZ analysts said in a note. "Concerns are mounting over the Fed's approach to rate cuts, with higher oil prices raising the possibility of renewed inflation pressures." Data showed U.S. consumer spending increased slightly more than expected in January, which combined with continued strength in underlying inflation and the Iran war, sustained views by economists that the Federal Reserve would not resume cutting interest rates for some time. The gold price remains unable to benefit from the Middle East crisis, Commerzbank commodity analyst Barbara Lambrecht said in a note. With Brent crude above $100/bbl, inflation risks are rising, clouding the outlook for U.S. rate cuts, but "it is also likely that investors are trying to cover losses in other asset classes, as outflows from gold ETFs have resumed since the beginning of March." Front-month Comex gold ( XAUUSD:CUR ) for March delivery closed -1.2% on Friday to $5,052.50/oz, while front-month Comex March silver ( XAGUSD:CUR ) ended -4.4% to $80.914/oz, the lowest settlement value for both metals since February 19; for the full week, gold dropped 1.8% and silver slumped 3.5%. ETFs: ( GLD ), ( GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( RING ), ( BAR ), ( OUNZ ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ) More on gold and silver Silver Mining Stocks With P...