Gold prices rose on Friday (July 18th), but were on track for a weekly decline as concerns about the US Federal Reserve's independence eased and strong US data emerged, while platinum rose to a nearly 11-year high.

Spot gold rose 0.3% to $3,349.49 an ounce, as of 08:34 GMT, after falling 1.1% in the previous session. Bullion has fallen 0.2% so far this week. US gold futures fell 0.3% to $3,354.70. The US dollar, open a new tab, fell 0.4% for the day, but was headed for a second straight weekly gain. A stronger dollar tends to make gold more expensive for buyers holding other currencies.

Earlier this week, a source told Reuters that US President Donald Trump was open to firing Fed Chairman Powell, but Trump later said he had no plans to fire him despite Powell's renewed criticism of interest rate policy.

Meanwhile, US data showed that retail sales rose more than expected in June, while initial jobless claims were better than expected. "Market participants remain concerned about the Fed's independence. For now, that risk has receded, and US economic data remains solid, limiting gold price gains," said UBS commodities analyst Giovanni Staunovo. "But at the same time, Trump wants the Fed to cut interest rates aggressively... This provides a floor for the market."

Gold bullion is seen as a safe haven asset during times of uncertainty and performs well in low-interest-rate environments. "While gold may struggle in the short term without any specific new policy surprises, its upward trend remains strong, supported by central bank buying and, increasingly, real-money demand for allocated bullion," said Adrian Ash, head of research at online marketplace BullionVault.

"In precious metals, the carnival has shifted from gold as a safe haven asset to silver, platinum, and palladium as pro-growth industrial alternatives." Spot platinum rose 1% to $1,472.20 an ounce, its highest since August 2014. Palladium rose 1.4% to $1,297.78, its highest since August 2023. Silver was unchanged at $38.12. (alg)

Source: Reuters