Comments
Gold slipped on Friday as the dollar got some relief from robust US economic data, but the metal was on track for its largest weekly climb since June on gains earlier in the week from safe-haven demand.
Spot gold had eased 0.1 per cent to $1,226.20 an ounce by 0035 GMT, after ending relatively flat over the past two sessions. It is up 2.9 per cent for the week — its best since the week ended June 20.
The dollar was firmer against most of its major peers early on Friday thanks in part to upbeat US retail sales data, which provided fresh evidence of underlying momentum in the economy.
Strength in the economy and the greenback dulls the appeal of gold, often seen as a hedge. Higher equities also hurt bullion.
Movements in the energy markets were eyed by bullion investors for cues as weaker oil prices would decrease the demand for gold, an inflation hedge.
US crude dropped more than $1 to a fresh 5-1/2 year low below $59 a barrel in early Asian trade on Friday, extending its losses on persistent concerns over a supply glut and a bearish demand outlook.
Earlier in the week, gold had gained as global equities and the dollar tumbled on profit-taking, global growth concerns and political uncertainty in Greece. The metal climbed to a seven-week high of $1,238.20.
An improvement in sentiment was seen in the holdings of the world’s top gold-backed exchange-traded fund, SPDR Gold Trust. The fund’s holdings rose 0.13 per cent to 725.75 tonnes on Thursday — a third straight day of inflows.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.