Gold may decline on reduced safe-haven demand; Support is seen at $1969

Gold closed the week with a 1% loss at $1982.89, as US manufacturing and services expanded, sending yields up and the dollar stronger. Despite failing to push through at $2020, gold remains vulnerable in the short term. With the US Federal Reserve approaching a rate-hike pause, the eurozone and UK are expected to hike rates higher as inflation remains elevated. While gold’s safe haven attribute is not driving its present strength, sustained weak indicators, including declining retail sales, negative outlook data, and elevated jobless claims, may be supportive to the metal in the longer term.

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