· Gold prices were range bound on Friday and on track to post a weekly and monthly decline as a stronger dollar dented the precious metal’s appeal.
· Spot gold was up 0.1% at $1,842.58 per ounce by 0326 GMT. Prices were down 0.5% for the week and 2.8% for the month.
· U.S. gold futures rose 0.2% to $1,844.20.
· “Gold is largely going to continue to tread water as it is waiting for a proper catalyst,” said Michael McCarthy, chief market strategist at CMC Markets.
· “Dollar has become the current safe-haven favorite,” Phillip Futures said in a note.
· The greenback has risen 0.8% this month helped by higher U.S. Treasury yields and concerns that President Joe Biden’s fiscal spending package will not be as large as the proposed $1.9 trillion.
· Higher Treasury yields elevate demand for the dollar as it is used to buy bonds.
· “The short-term fundamentals have currently turned unfavorable towards gold as dollar strengthened because of unwinding stocks bets in the U.S,” Phillip Futures said.
· Investors remain focused on the U.S. stimulus deal as analysts warn that a smaller stimulus or delay in getting the aid passed could weigh on gold prices.
· Silver dropped 0.6% to $26.21 an ounce, having gained 4.5% on Thursday after some traders moved to cover short positions on rumors about a GameStop-style squeeze driven by retail investors.
· However, the metal is up 3.1% for the week, its best weekly performance in nearly one-and-a-half months.
· The steadier nature of commodity markets at the moment might be less attractive to retail day traders, said CMC Markets’ McCarthy.
· Platinum was flat at $1,070.81, but was set to register its worst week in seven. Palladium rose 0.2% to $2,338.86, but was down 4.4% for the month, its biggest monthly decline since April last year.
Reference: CNBC
Thai
Eng