Gold set for biggest weekly fall in more than a year

By Daily Tribune

Gold recovered some ground yesterday as a weakening US dollar relieved pressure on prices, but the metal remained near 19-month lows and looked set for its biggest weekly fall since May 2017.

Gold has tumbled 14 per cent from its April high as a rally in the greenback made dollar-priced bullion more expensive for buyers with other currencies.

Investors seeking a safe place to store assets amid trade disputes and a Turkish currency crisis have preferred the dollar to gold, undermining the reputation of bullion as a safe haven. But news of planned US-China trade talks and a partial recovery of Turkey’s lira have steadied nerves slightly.

From a 13-month high on Wednesday against a basket of peers, the dollar has weakened against the currencies of key gold markets the euro zone and China, helping gold regain its footing, said ABN AMRO analyst Georgette Boele.

“I expect the dollar to peak in the coming weeks … Gold should bottom out here,” she said. Spot gold was up 0.5pc at $1,178.81 an ounce at 1345 GMT but down 2.6pc this week in its sixth consecutive weekly loss. On Thursday it touched $1,159.96, the lowest since January 2017.

US gold futures were 0.2pc higher at $1,186.40 an ounce. In other precious metals, silver was up 0.5pc at $14.68 an ounce and down 4pc this week, the biggest weekly loss since February.

On Thursday it touched its lowest since February 2016.

This article provided by NewsEdge.