Investing.com - Gold prices edged lower on Friday and posted its worst week since early December as the dollar extended a recovery from three year lows.
Gold futures for April delivery settled down 0.17% at $1,330.50 on the Comex division of the New York Mercantile Exchange. For the week, prices were down 1.91%.
A stronger dollar makes gold more expensive for overseas buyers. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.17% to 89.81 in late trade.
The index climbed 0.9% for the week and is up around 2% since hitting a three year low of 88.15 on February 16.
Demand for the dollar continued to be underpinned after the minutes of the Federal Reserve's January meeting underlined expectations for more aggressive monetary tightening this year.
Wednesday’s minutes of the Fed's Jan. 30-31 policy meeting showed that policymakers plan to continue gradually lifting rates with economic growth picking up.
Expectations for higher interest rates are typically bearish for gold as the precious metal struggles to compete with yield-bearing assets such as Treasury’s when borrowing costs rise.
Elsewhere in precious metals trading, silver dropped 0.58% to $16.49 a troy ounce, to end the week down 1.31%.
Platinum settled at $998.1, down 0.13% for the day and was down 1.06% for the week.
Among base metals, copper for March delivery was down 0.9% at $3.208 in late trade. Prices have remained below December’s four-year highs so far this year amid concerns over the prospect of an economic slowdown in China, the world’s largest consumer of industrial metals.
The March copper contract rolled over on Feb. 25 to the May contract.
In the week ahead, investors will be awaiting remarks by new Fed Chair Jerome Powell when he faces questions from both houses of the U.S. Congress in semi-annual testimony starting on Tuesday.
In the euro area, Wednesday’s inflation data will be closely watched amid speculation over how soon the European Central Bank will start unwinding its stimulus program.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 26
ECB head Mario Draghi is due to testify on monetary policy and the inflation outlook before the European Parliament Economic and Monetary Affairs Committee, in Brussels.
The U.S. is to publish data on new home sales.
Fed Governor Randal Quarles is to speak at an event in Washington.
Tuesday, February 27
New Zealand is to produce data on trade.
In the euro zone, Germany is to release preliminary inflation data.
Fed Chairman Jerome Powell is to testify on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington.
The U.S. is to release data on durable goods orders and consumer confidence.
Wednesday, February 28
New Zealand is to publish a report on business confidence.
China is to publish PMI data on manufacturing and service sector growth.
The euro zone is to release preliminary inflation data.
The U.S. is to publish revised data on fourth quarter growth, as well as a report on business activity in the Chicago region and data on pending home sales.
Thursday, March 1
Australia is to release data on private capital expenditure.
China is to publish its Caixin PMI.
The UK is to publish data on manufacturing activity.
The U.S. is to publish what will be a closely watched report on personal income and spending, which includes the personal consumption expenditures inflation data, the Fed's preferred metric for inflation.
The U.S. is also to report on jobless claims and the Institute of Supply Management is to release data on manufacturing activity.
Fed Chairman Jerome Powell is to testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, in Washington.
Friday, March 2
In the euro zone, Germany is to release data on retail sales.
The UK is to publish data on construction activity.
Bank of England Governor is to speak at an event in Edinburgh.
Canada is to publish its monthly report on economic growth.
The U.S. is to wrap up the week with revised data on consumer sentiment.