Gold prices hit 1-week low on strong rebound in US dollar

Gold prices dropped to its lowest in over a week and was en route to its second straight weekly decline on Friday, as a strong rebound in the dollar and resurgence in U.S. business activity dented bullion’s allure.

Spot gold fell 0.2% to $1,939.64 per ounce by 1:43 p.m. EDT (1543 GMT), after declining over 1% to $1,910.99. U.S gold future settled unchanged at $1,947.

For the week, gold is down 0.3% and prices have retreated sharply from above $2,000 hit earlier this week.

The dollar was up 0.6% against rivals, making gold more expensive for holders of other currencies.