LONDON: Gold fell half a per cent on Friday and was on track for its biggest weekly loss in nearly four months as speculation grew that the US Federal Reserve would press ahead with a rate increase this month.

Spot gold was down 0.5pc at $1,228.05 an ounce by 1430 GMT, while US gold futures for April delivery were down $4.50 at $1,228.40. Gold prices have retreated sharply since failing to decisively break through resistance at their 200-day moving average of $1,261 this week.

The world’s largest gold-backed exchange-traded fund, SPDR Gold Shares , reported a second daily inflow on Thursday, of 1.8 tonnes, bringing the weekly rise to 4 tonnes.

Silver was down 0.1pc at $17.73 after falling 3.5pc on Thursday, its biggest one-day drop in 11 weeks. It is set to end the week 3.4pc lower. Palladium was 1.3pc lower at $757.55. Platinum, however, recovered from the previous session’s slide to a $978.75 one-month low to trade at $987.90 an ounce, up 0.3pc.

Published in Dawn, March 4th, 2017