Gold and Silver Decline Amid Dollar Strength Following Economic Data

Gold prices saw a retreat on Friday, influenced by the strength of the dollar. This movement followed data revealing a lesser-than-expected rise in inflation in the United States, which subsequently diminished the allure of the precious metal as a hedge against inflation.

In the early trading hours, spot gold decreased by 0.3 percent to $4319.07 per ounce as of 0147 GMT. Meanwhile, U.S. gold futures dropped by 0.4 percent, reaching $4346.70.

Silver also experienced a decline in the spot market, decreasing by one percent to $64.79 per ounce. This happened after reaching a record high of $66.88 on Wednesday.

Since the start of the year, silver has surged by 125 percent, outperforming gold, which recorded a 65 percent annual increase. The dollar remains stable, hovering near its highest levels in a week. This positions the precious metal as more expensive for those holding other currencies.

Among other precious metals, platinum gained 0.5 percent, hitting $1924.59. This came after marking its highest point in over 17 years on Thursday. Conversely, palladium witnessed a decline of 1.1 percent to $1677.68 after achieving its nearly three-year peak on Thursday.