LONDON: Gold fell 1 per cent on Friday, putting it on track for its second straight weekly fall, as robust economic data from the United States and the planned resumption of trade talks between Washington and Beijing boosted appetite for riskier assets.
Spot gold was down 0.9pc at $1,505.41 per ounce as of 1152 GMT, having shed as much as 1pc earlier in the session, and retreating from an over six-year peak of $1,557 touched on Wednesday.
Gold fell more than 2pc on Thursday and was down about 0.9% so far this week.
US gold futures slid 0.8pc to $1,513.80.
“The good economic news from the U.S. and the news of the restart of trade negotiations drove risk-on sentiment and in turn drove down demand for gold and other safe-haven assets,” said SP Angel analyst Sergey Raevskiy.
US data showing private employers’ payrolls rose and the growth of the services sector accelerated in August increased investors’ appetite for riskier assets, which were already buoyed by positive signs on US-China trade talks.
“Most of it (gold’s movement) will depend on the jobs report and if the data comes out stronger, we might see prices dip below (the $1,500 level),” Raevskiy said, adding people will buy on dips as gold is still supported by the lack of a “resolution” in the trade war and negative-yielding sovereign debts.
Spot platinum dropped 3.1pc to $928.95 an ounce, while palladium fell 2.1pc to $1,526.62.
Published in Dawn, September 7th, 2019