LONDON: Gold prices slid on Friday to their lowest in more than a week as the dollar rose due to easing trade tensions and demand for the precious metal was weak due to expectations of higher US interest rates.

Spot gold was 0.6 per cent lower at $1,239.70 an ounce at 1151 GMT, down from $1,238.87 earlier, its lowest since July 3. It has fallen about 9pc since the middle of April.

US gold futures slipped 0.5pc to $1,240.9 an ounce. Tensions between the United States and China eased after US Treasury Secretary Steven Mnuchin said on Thursday talks between the world s two largest economies could be reopened if Beijing was willing to make significant changes. A rising US currency makes dollar-denominated gold more expensive for holders of other currencies, which potentially weighs on demand.

“When the dollar rises we see gold falling, but when the dollar falls we don’t see gold recovering because there is very little appetite for gold at this time,” said ActivTrades analyst Carlo Alberto De Casa. “Higher interest rates in the US means holding gold costs money.”

Silver fell 0.7pc to $15.78 an ounce, platinum lost 1.5pc to $826.74 an ounce and palladium was 1.1pc lower at $939.21.

Published in Dawn, July 14th, 2018