LONDON: Gold prices fell towards a second weekly loss on Friday after US payrolls data failed to allay uncertainty over the prospect of a near-term interest rate hike from the Federal Reserve.

Spot gold was down 0.4 per cent at $1,120.80 an ounce at 1346 GMT, while US gold futures for December delivery were down $4.70 at $1,119.80. The metal is on track to fall for a second week.

Gold has come under pressure this year from expectations the Fed will hike rates for the first time in nearly a decade. The metal has benefited from ultra-low interest rates, which cut the opportunity cost of holding bullion while pressuring the dollar.

Gold prices in India swung to a discount to the global benchmark this week for the first time since mid July as a weak monsoon dampened demand in another of the world’s biggest consumers.

Among other precious metals, silver was down 1.4pc at $14.56 an ounce. Platinum was down 0.4pc at $997.50 an ounce, while palladium was up 0.4pc at $575.22 an ounce.—Reuters

Published in Dawn, September 5th, 2015

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