LONDON: Gold prices inched lower on Friday and were on track for their biggest weekly decline in 2-1/2 years as a stronger dollar weighed, while optimism around US-China trade talks dented bullion’s safe-haven appeal.
Spot gold was down 0.1 per cent at $1,465.97 per ounce at 1101 GMT, poised for its biggest weekly drop - about 3pc - since May 2017. On Thursday, prices fell to their lowest since October 1 at $1,460.75.
US gold futures were steady at $1,466.90.
“Gold is down because the dollar is doing well and some people who bought gold as a safe haven are moving out,” ABN Amro analyst Georgette Boele said. “You will get some profit-taking pushing gold prices lower.”
The dollar index was headed for a weekly gain as it benefited from news that China and the United States had agreed to roll back tariffs as part of a potential preliminary pact to end their trade war.
However, some doubts emerged as officials inside and outside the White House opposed the notion of giving up punitive tariffs. The uncertainty limited bullion’s fall.
“We are trading on a lot of speculation right now and there’s no solid evidence or anything specific,” Craig Erlam, OANDA senior market analyst, said, adding gold could move back to $1,440 if a phase 1 trade deal were signed next month.
Elsewhere, silver dropped 0.8pc to $16.97 per ounce, and was set to fall more than 6pc for the week, its steepest drop since October 2016.
Platinum fell 1.16pc to $897.94 per ounce, poised for a 5pc drop for the week.
Palladium lost 0.6pc to $1,791.40 and was headed for a weekly decline after rising for four weeks.
Published in Dawn, November 9th, 2019