Investing.com-- Gold prices fell slightly on Friday, trimming some of their gains for the week as comments from a slew of Federal Reserve officials offered a more sobering outlook on interest rate cuts.
The yellow metal had risen to nearly $2,400 an ounce this week in the immediate aftermath of some soft U.S. economic readings. But it pulled back from these levels on Thursday and Friday.
Spot gold steadied at $2,377.40 an ounce, while gold futures expiring in June fell slightly to $2,381.10 an ounce by 00:19 ET (04:19 GMT).
Gold retreats as Fed officials downplay rate cuts, but weekly gains due
The yellow metal fell on Thursday after a string of Fed officials cautioned against bets on immediate reductions in interest rates.
Several members of the central bank’s rate setting committee said the central bank will need much more convincing that inflation was coming down beyond a marginally soft inflation reading for April.
This saw traders begin pricing out some expectations for a rate cut in September. The dollar and U.S. Treasury yields also rebounded from earlier losses this week.
Still, some softer-than-expected consumer price index readings put gold on course for a 0.7% weekly gain.
The yellow metal was also in sight of a record high of above $2,430 an ounce, although it appeared unlikely the level would be met in the near-term.
Other precious metals retreated on Friday, but were set for bumper weekly gains. Platinum futures fell 0.2% but were trading up 6.2% for the week, while silver futures fell 0.4% but were up 4.5% this week.
Copper mixed amid middling China cues
Among industrial metals, one-month copper futures tumbled from two-year highs tracking middling economic data. But three-month copper futures pushed higher and were set for a stellar week as markets bet on tighter supplies and an eventual demand recovery in the coming months.
Three-month copper futures on the London Metal Exchange rose 0.6% to $10,445.0 a ton, while one-month copper futures rose 0.3% to $4.8935 a pound.
Data from China on Friday painted a mixed picture of the economy. While industrial production grew more than expected, retail sales growth slowed and house prices shrank at an accelerated pace. Growth in Chinese fixed asset investment also slowed.
The readings presented a muddled outlook for the world’s biggest copper importer, as it rolled out more stimulus measures to shore up growth.
Three-month copper futures gained on the prospect of a demand recovery, and were up nearly 4% this week. They were also at two-year highs.