May 15 (Reuters) – Gold fell to a more than one-week low on Friday, and was set for a weekly decline, as higher energy prices fueled fears of inflation and prolonged higher interest rates, while investors focused on a meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
FUNDAMENTALS
* Spot gold fell 0.6% to $4,619.49 per ounce by 0045 GMT. Bullion was down 1.9% so far this week.
* U.S. gold futures for June delivery lost 1.3% to $4,625.70.
* The dollar gained over 1% so far this week, making greenback-priced bullion expensive for holders of other currencies. [USD/]
* Brent crude oil prices were up 5% this week, hovering above $106 a barrel, as the Iran war drags on, keeping the key Strait of Hormuz largely shut. [O/R]
* U.S. President Donald Trump and Chinese President Xi Jinping are set to meet later in the day to wrap up a two-day state visit that has featured pomp and business deals but also a stark warning from Xi that mishandling the Taiwan issue could push U.S.-China relations to “a very dangerous place.”
* Federal Reserve Bank of New York President John Williams said on Thursday he does not see a need right now for the central bank to weigh any change in interest rate policy amid the uncertainty created by the Middle East war.
* India will restrict imports of gold to 100 kilograms under its advance authorization scheme, which gives Indian exporters certain exemptions, the Directorate General of Foreign Trade said in a statement on Thursday.
* On the data front, the number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable labor market even as rising energy prices from the war with Iran drive up inflation.
* U.S. retail sales increased solidly for a third straight month in April, though part of the rise in receipts was due to a sharp rise in inflation.
* Spot silver fell 1.7% to $82.08 per ounce, platinum lost 0.6% to $2,043.25, and palladium was down 0.1% at $1,435.36.
DATA/EVENTS (GMT)
1000 EU Reserve Assets Total Apr
1315 US Industrial Production MM Apr
(Reporting by Noel John in Bengaluru; Editing by Rashmi Aich)