• Gold prices edged higher on Friday as the dollar softened and risk aversion due to geopolitical events buoyed the safe-haven appeal of the metal.
Spot gold was up 0.1 percent at $1,251.96 per ounce, as of 0443 GMT. It was down 0.1 percent for the week, and was headed for a third consecutive weekly fall.
• "Risk aversion is on the rise, mainly due to what's happening in the Middle East and also the news about China cracking down on some loans made overseas last year," said Richard Xu, a fund manager at China's biggest gold exchange-traded fund, HuaAn Gold.
• The political situation in the United States, the UK, and North Korea-related developments are among the other factors creating a safe-haven demand for gold, said Brian Lan, managing director at gold dealer GoldSilver Central in Singapore.
• "The Fed has mentioned it will most likely raise rates one more time. The data will be important to know whether it is a favorable time for the central bank to raise rates," Lan added.
• Investors will keep an eye on key U.S. economic data due next week for cues on the U.S. Federal Reserve's rate hike decision.
U.S. data due next week include the June consumer confidence indicator, pending home sales, crude oil inventories, revised first quarter GDP and the PCE price index.
• Spot gold may retest a resistance at $1,254 per ounce, with a good chance of breaking above this level and rising more towards the next resistance at $1,262, according to Reuters technical analyst Wang Tao.
• Among other precious metals, silver rose 0.4 percent to $16.60 per ounce.
• “Our formal forecast for gold sees the precious metal ending the year down at $1183,” global head of market strategy at Westpac, Robert Rennie, told Kitco News in a telephone interview Thursday.
Reference: Reuters
Thai
Eng