2021.01.2218:48:00UTC+00Gold Futures Settle Lower

Gold prices drifted lower on Friday as the dollar gained in strength, rebounding from recent losses. Higher bond yields too weighed on gold prices.

However, continued optimism about further stimulus from Joe Biden administration supported the bullion and limited its downside.

The dollar index, which fell to 90.05 in the Asian session, emerged into positive territory swiftly, and stayed mostly higher as the session progressed. It was last seen at 90.20, up 0.08% from previous close.

Gold futures for February ended down $9.70 or about 0.5% at $1,856.20 an ounce. Gold futures gained about 1.4% in the week.

Silver futures for March ended down $0.298 at $25.556 an ounce, while Copper futures for March settled at $3.6260 per pound, down $0.0215 from previous close.

In economic news, a report released by the National Association of Realtors showed existing home sales in the U.S. unexpectedly rebounded in the month of December, climbing by 0.7% to an annual rate of 6.76 million. In November, home sales had tumbled by 2.2% to a revised rate of 6.71 million.

The rebound surprised economists, who had expected existing home sales to slump by 2.1% to a rate of 6.55 million from the 6.69 million originally reported for the previous month.