Gold Price News: Gold Pulls Back from All-Time High as Dollar Strengthens

Gold prices fell on Friday, giving up some of the gains seen earlier in the week, as the US dollar rose against other currencies.

Prices fell as low as $3,000 an ounce before edging higher to $3,020 an ounce later in the day. That compared with an all-time intraday high of $3,058 an ounce on Thursday.

The US dollar strengthened against other major currencies in the second half of the week, putting downward pressure on dollar-denominated gold prices.

Tensions maintain support for gold

Despite the modest pull-back for gold, the yellow metal managed to post a gain of over 1% across the week as a whole, with prices taking support from ongoing geopolitical tensions, economic uncertainties and expectations that central banks will cut interest rates later in the year.

Citi hikes gold price forecast

On the news front, Citi Research last week hiked its gold price target for the next three months to $3,200 an ounce, citing strong official sector demand and exchange-traded fund demand, according to news reports. The research unit of Citigroup bank also said its bull case includes gold prices rising as high as $3,500 an ounce by the end of 2025.

Upcoming data

Looking ahead, Monday will bring monthly manufacturing and services figures for the Euro Area, UK and US, providing the latest gauge of economic conditions in several major economies. Then on Wednesday, the markets will get a further update on the US markets with the durable goods orders for February. Tepid economic figures would indicate a weaker dollar and a more dovish monetary policy outlook, supporting gold, while upbeat economic data would suggest a stronger dollar and higher interest rates, weighing on the precious metal.