Gold Markets: Dollar, global economy

Several people hold up gold bars for a photo.

Akos Stiller | Bloomberg | Getty Images

Gold prices fell on Friday after a sharp rise in the previous session as the dollar regained lost ground, although doubts over a swift global economic recovery kept bullion on track for a weekly gain.

Fundamentals

Spot gold was down 0.3% at $1,947.41 per ounce by 0058 GMT, after hitting its best level since September 2 at $1,965.94 on Thursday. Gold has gained 0.8% so far this week.

U.S. gold futures fell 0.5% to $1,955.30.

The dollar index held firm against its rivals, recovering from a drop against the euro in the previous session.

A stronger greenback makes gold more expensive for holders of other currencies.

Asian markets were expected to fall on Friday in response to declines in technology stocks that began last week and growing concerns about another round of negotiations on the UK’s departure from the European Union.

The European Central Bank left policy unchanged on Thursday.

The U.S. Senate on Thursday killed a Republican bill that would have provided around $300 billion in new coronavirus aid, as Democrats seeking far more funding prevented it from advancing.

The number of Americans filing new claims for unemployment benefits hovered at high levels last week, suggesting the labor market recovery from the Covid-19 pandemic was stalling.

Investors now await British GDP data and U.S. inflation numbers due later in the day for further clarity on the progress of the global recovery from a coronavirus-induced economic slump.

Silver fell 0.3% to $26.84 per ounce, platinum eased 0.1% to $925.59 and palladium lost 0.4% to $2,283.72.

Source Article

Next Post

Forex Markets: Euro, Brexit

US Dollar notes and euro coins are arranged for a photograph on Sept. 11, 2017. studioEAST | Getty Images The dollar clung to gains on Friday after a rout in stocks sent nervous investors to its safety, while sterling was poised for its worst week since March as British plans […]