Gold futures continued to plunge lower for a seventh straight session Friday, with the dollar rising to a near three-year high against a basket of major currencies on some upbeat macroeconomic data and speculations the U.S. Federal Reserve may drastically scale down its quantitative easing program.
Gold prices shed 5% for the week.
Earlier today, San Francisco Federal Reserve President John Williams indicated the Fed could slow the pace of its asset purchases as early as this summer if labor market indicators continue to improve.
In some positive economic news, the leading economic indicators in the U.S. rose more than anticipated in April led by building permits and the interest rate spread, a Conference Board report showed Friday. Meanwhile, consumer sentiment in the U.S. showed a substantial improvement in May, as per the Thomson Reuters and the University of Michigan report Friday.
Gold for June delivery, the most actively traded contract, plunged $22.20 or 1.6 percent to close at $1,364.70 an ounce Friday on the Comex division of the New York Mercantile Exchange.
Gold for June delivery scaled an intraday high of $1,391.30 and a low of $1,357.60 an ounce.
Yesterday, gold extended losses for a sixth-straight session following a decline in U.S. inflation rate, even as the dollar dropped against some major currencies on a slew of weak macroeconomic data out of the U.S. A Labor Department report on Thursday showed U.S. consumer price inflation to have dropped more than expected in April, due mainly to a substantial decline in energy prices. Gold normally tends to gain in an inflationary environment and loses out in deflationary conditions.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1,041.42 tons from 1,047.13 tons.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 84.19 on Thursday, up from 83.75 late Thursday in North American trade. The dollar scaled a high of 84.37 intraday and a low of 83.73.
The euro traded lower against the dollar at $1.2833 on Friday, as compared to $1.2882 late Thursday in North America. The euro scaled a high of $1.2890 intraday and a low of $1.2798.
In economic news, the Conference Board's leading economic index rose 0.6 percent in April following a revised 0.2 percent decrease in March. Economists expected the index to increase by a more modest 0.3 percent compared to the 0.1 percent drop originally reported for the previous month.
The consumer sentiment index for May rose to its highest level in nearly six years. In a preliminary reading, the consumer sentiment index for May came in at 83.7 compared to the final April reading of 76.4. This was well above economist estimates for a reading of 78.0, the highest level since July 2007.
From the eurozone, construction output continued its decline for the fifth month in a row in March, Eurostat reported. Production in construction fell at a faster pace of 1.7 percent, following a 0.3 percent drop in February. Building construction and civil engineering slid 1.4 percent and 2.4 percent, respectively. On a yearly basis, overall construction output plunged 7.9 percent, reversing last month's 1.7 percent increase.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.