The precious metal hit a low of $1211.16 an ounce, while currently trading around $1221.48 from the opening at $1219.53.
So far, gold has cut 5 percent since the beginning of May, on track for its fourth straight weekly drop and the biggest monthly decline since November.
The dollar rebounded today after falling for two straight sessions after the release of upbeat U.S. data and comments from Fed Governor Jerome Powell on Thursday.
Fed Powel said the economy was on a “solid footing” and within reach of the Fed’s inflation goals, raising expectations the Fed could hike its interest rates next month.
Data released yesterday signaled a climb in durable goods in April, drop in unemployment claims and a more than expected rise in pending home sales.
Gold is very sensitive to interest rate movements, especially by the Fed, since the yellow metal provides no interest to its holders and thereby benefits from the low interest rate environment.
The dollar fell from a two-month high on Wednesday, but managed to rebound on Friday, but will struggle to lock its fourth weekly gain.
Meanwhile, the dollar index, which tracks the green currency’s movements against a basket of major currencies, is trading around 95.25.
Later in the day, investors will focus on a speech by Fed Chair Janet Yellen speaks at Harvard University on Friday, as investors aim to get further clues whether the Fed would hike interest rates in June.
Before the speech, U.S. preliminary first-quarter GDP figures and revised consumer sentiment for May will grab attention.
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