You are here: Home » International » News » Markets
Business Standard

Gold slips from one-week peak hit by stronger dollar; down 0.8%

Spot gold was down 0.8% at $1,938.53 per ounce by 0308 GMT, after hitting its best level since Sept 2 at $1,965.94 on Thursday

Topics
Gold Prices

Reuters 

Gold slips from one-week peak hit by stronger dollar; down 0.8%

By Brijesh Patel

(Reuters) - fell on Friday as the U.S. dollar rebounded, but the yellow metal was on track for a weekly gain underpinned by worries over a global economic recovery from the coronavirus-led slump.

Spot gold was down 0.8% at $1,938.53 per ounce by 0308 GMT, after hitting its best level since Sept. 2 at $1,965.94 on Thursday. Gold has gained 0.4% this week.

U.S. gold futures fell 0.8% to $1,948.

"A rebound in the U.S. dollar index sent lower following the European Central Bank's neutral tone last night," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading.

"The mid- to-long-term outlook remains bullish for gold, despite recent consolidation. An ultra-loose monetary policy and low yield environment is cushioning the downside."

The dollar index bounced back on Friday following a steep drop against the euro in the previous session and was on track for its best week since mid-May. A stronger greenback makes gold more expensive for holders of other currencies.

Casting a shadow over hopes for a quick economic rebound, U.S. weekly jobless claims hovered at high levels last week, suggesting a slowing labor market recovery.

have climbed 28% this year as governments and major central banks pumped massive stimulus into the economy and kept interest rates low to alleviate the economic toll of the coronavirus.

The U.S. Senate blocked a Republican bill that would have provided around $300 billion in new coronavirus aid, as Democrats push for more funding.

Investors' focus will now shift to British GDP data and U.S. inflation data due later in the day.

Elsewhere, silver dropped 1.2% to $26.61 per ounce and palladium lost 0.7% to $2,278.86.

Platinum eased 0.4% to $922.43, but was heading for its best week since week-ending Aug. 7, up 3%.

 

(Reporting by Brijesh Patel in Bengaluru; Editing by Amy Caren Daniel and Clarence Fernandez)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, September 11 2020. 09:51 IST
RECOMMENDED FOR YOU