ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • India
    • Economy
    • Politics
    • Markets
  • World
    • Economy
    • Politics
    • Markets
  • Companies
    • Auto
    • Banking & Financial Services
    • Pharma
    • Energy
    • Infrastructure
    • Media
    • IT
    • Telecom
    • Consumer Products
    • Aviation
    • FMCG
  • Personal Finance
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
  • Mutual Funds
  • Technology
  • Automobile
    • Cars
    • Bikes
  • Small Business
    • SME
    • Startups
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
    • AUTHORS
Home » World News

Dollar rise pushes gold toward biggest weekly fall since May

  • Twitter
  • Facebook
  • GPlus
Updated: Fri, Dec 08, 2017
09:06 pm
Reuters
RELATED NEWS
Gold futures up Rs 12 on global cues Gold futures up Rs 12 on global cues
KCR retains key portfolios including Finance KCR retains key portfolios including Finance
Cabinet clears promulgating fresh ordinance for companies law amendments Cabinet clears promulgating fresh ordinance for companies law amendments
Cabinet approves continuation of Khadi Gramodyog Vikas Yojana till FY20 Cabinet approves continuation of Khadi Gramodyog Vikas Yojana till FY20
Cabinet approves ordinance to curb unregulated deposit schemes Cabinet approves ordinance to curb unregulated deposit schemes

Gold prices steadied on Friday but were on track for their biggest weekly fall since May ahead of U.S. employment data later that could influence the pace of U.S. interest rate rises.

Gold this week broke below a recent trading range and tumbled through technical levels to its lowest since July as progress on U.S. tax reform fuelled optimism about the U.S. economy and boosted the dollar.

"You can put it down to the strength of the dollar and the ebullience of investors regarding equities and all things risk-on," said ETF Securities analyst Martin Arnold.

"When in such a positive mindset investors don`t look for defensive assets like gold."

The dollar was given an extra boost on Friday after a funding bill eased fears of a U.S. government shutdown this month. A stronger dollar makes bullion more expensive for holders of other currencies and can dampen demand.

Spot gold was up 0.1 percent at $1,247.50 an ounce at 1225 GMT, close to Thursday`s low of $1,243.71, the weakest since July 26. It had fallen 2.5 percent this week, its third consecutive weekly fall and the biggest since early May.

U.S. gold futures were 0.3 percent lower at $1,249.40 an ounce.

Selling was triggered after gold broke below $1,260, the bottom of its trading range since September, and plunged below its 200-day moving average for the first time since July.

Technical support is now at $1,250 and a fibonacci level at $1,240.90 but momentum indicators suggest that gold could fall to $1,204.90, the July low, said analysts at ScotiaMocatta.

However, ETF Securities` Arnold said prices were supported by risks including U.S. policy paralysis, tensions in North Korea and the Middle East, and a potential correction in equity valuations. He said gold`s fair value was $1,260-$1,280.

Gold is traditionally seen as a safe investment in times of uncertainty.

Investors were looking ahead to U.S. non-farm payrolls data at 1330 GMT. The U.S. Federal Reserve is expected next week to announce a rise in interest rates and offer guidance on the pace of further increases. Strong payrolls would support the case for aggressive rate rises.

Gold is sensitive to rising interest rates because they push up bond yields, reducing the appeal of non-yielding gold, and tend to boost the dollar.

Among other precious metals, silver was up 0.7 percent at $15.84 but down around 3.7 percent this week.

Platinum was 0.2 percent higher at $893 an ounce but on track to fall nearly 5 percent this week, its biggest weekly loss in nine months.

Palladium was flat at $1,013 an ounce.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

TAGS:
Economy
RELATED NEWS
Gold futures up Rs 12 on global cues Gold futures up Rs 12 on global cues
KCR retains key portfolios including Finance KCR retains key portfolios including Finance
Cabinet clears promulgating fresh ordinance for companies law amendments Cabinet clears promulgating fresh ordinance for companies law amendments
Cabinet approves continuation of Khadi Gramodyog Vikas Yojana till FY20 Cabinet approves continuation of Khadi Gramodyog Vikas Yojana till FY20
Cabinet approves ordinance to curb unregulated deposit schemes Cabinet approves ordinance to curb unregulated deposit schemes

LATEST NEWS

Salman Khan gifts new Range Rover LWB to his mom: Here is what makes this SUV special

Anil Singhvi’s Strategy February 19: Market is Negative; Buy Page Industries Futures with Stop Loss 21,650

Flipkart Mobiles Bonanza Sale: Massive discounts on Poco F1, Realme 2 Pro, Galaxy S8, Redmi Note 6 Pro; check top deals

Ministry of Defence is hiring! Check eligibility criteria, other details

UPSC Civil Services 2019 Online application process begins

Warren Buffett's top 5 investment tips to become rich fast

World's first diesel to electric converted locomotive flagged off by PM Narendra Modi: All you need to know

Number 112 launched in Punjab; to replace 100

LIC launches Micro Bachat plan with assured sum of Rs 2 lakh: Check benefits

Honda to shut UK car plant in 2022 with the loss of 3,500 jobs

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • Amazon Prime Day
  • Income Tax
  • Bharti Airtel
  • NPA
  • Home Loan

Trending Topics

  • Farm Loans
  • 7th Pay Commission
  • Sanitary Pads
  • National Stock Exchange
  • GST

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved