Gold climbed on Friday, but it still ended in the red for the seventh straight week, its worst streak since May 2004.
Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $2.90, or 0.26%, to end the week at $1,133.60 a troy ounce, not far from an 11-month low of $1,124.30 touched on December 15. Gold is down 3.3% this month.
Prices of the yellow metal have fallen sharply since Donald Trump was elected president as a soaring U.S. dollar, rising Treasury yields and a record-breaking rally on Wall Street have damped its appeal.
Market analysts warned that the outlook for gold remains cloudy in the near-term, given expectations for higher U.S. interest rates in the months ahead.
The Federal Reserve hiked interest rates for the first time in a year earlier this month and projected three more increases in 2017.
Both a strong dollar and higher interest rates are typically bearish for gold, which is denominated in dollars and struggles to compete with yield-bearing assets when borrowing costs rise.
In the week ahead, trading volumes are expected to remain light due to the Christmas holiday and as many traders already closed books before the end of the year, reducing liquidity in the market and increasing the volatility.
The U.S. is to release reports on consumer confidence, pending home sales and jobless claims, as traders look for further indications on the strength of the economy and hints on the future path of monetary policy.
Reference: Nasdaq
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