FX.co ★ Gold Set for Weekly Decline

Gold continued to stay below $3,340 per ounce on Friday, trending towards its first weekly decline in three weeks. This dip comes as robust U.S. economic indicators reduce the Federal Reserve's momentum for cutting interest rates. June's retail sales rebounded beyond expectations, and weekly initial jobless claims dropped unexpectedly to a three-month low, both highlighting the economy's resilience despite tariff impacts. Reflecting this economic strength, Federal Reserve Governor Adriana Kugler mentioned it would be fitting to maintain stable rates for the time being. Conversely, San Francisco Fed President Mary Daly still forecasts two rate cuts within the year. Still, demand for gold as a safe haven remains bolstered by continuing trade uncertainties, illustrated by President Trump's recent announcements to inform over 150 trade partners of their tariff rates. Meanwhile, geopolitical tensions, such as the intensifying Russia-Ukraine conflict and instability in the Middle East, further amplify gold's appeal as a secure investment.