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Gold falls on stronger dollar, on course for weekly loss

Gold falls on stronger dollar, on course for weekly loss

Mubasher: Gold declined on Friday, remaining on track to record its third weekly drop in four weeks as the US dollar strengthened to wipe out the boost from political and trade fears, Reuters reported.

By 8:46 am GMT, spot gold fell by 0.50% to $1,497.28 per ounce, declining by 0.7% for the week after posting almost 2% gain last week, while US gold futures dropped by 0.67% to $1,505.10 per ounce.

The yellow metal “looks set to remain anchored” in the middle of a long-term range of $1,480 to $1,530 per ounce for the session as investors looking for a clearer big picture, a note by OANDA analyst Jeffery Halley was quoted by Reuters.

The dollar remained close to its multi-week peaks as mounting risks from political tensions and the trade dispute between the US and China boosted its safe-haven appeal.

The dollar index, which traces the greenback against a basket of major rivals, inched up by 0.06% to 99.1960.

A whistle-blower report released on Thursday said that US President Donald Trump allegedly misused his position to ask Ukraine’s interference in the 2020 US elections, but the White House attempted “lock down” evidence about that conduct.

Markets remained cautious also on mixed messages conveyed by Washington and Beijing on their tariff war, which have helped gold gain some 17% until now this year.

China’s senior official told Reuters on Thursday that Beijing is willing to make further purchases of US goods, while the talks would yield progress, if both sides “take more enthusiastic [goodwill]” steps and reduce “pessimistic language.”

On the other hand, reports said that the US is not probably allowing US firms to provide components to China’s Huawei, dampening hopes of comprehensive trade deal between Washington and Beijing.