Home HEADLINES Gold at one-week low as dollar rallies and trade tensions ease

Gold at one-week low as dollar rallies and trade tensions ease

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Gold at one-week low as dollar rallies and trade tensions ease

BENGALURU: Gold hit a one-week low on Friday as the dollar strengthened ahead of U.S. growth data and as an agreement between the United States and Europe eased fears of a trade war and dented appetite for safe-haven assets.

The dollar rose to its highest in five days ahead of data expected to show the U.S. economy grew at a 4.1 percent annualized rate in the second quarter, after 2 percent growth in the first quarter.

Global shares were set for a sixth consecutive session of gains, meanwhile, on easing transatlantic trade tensions. Chinese shares, however, were feeling the effects of the lingering trade stand-off between the United States and China, while the yuan was on course for its seventh straight week of losses.

A strong dollar makes dollar-priced gold costlier for non-U.S. investors.

Spot gold was down 0.3 percent at $1,218.92 an ounce at 1009 GMT, having hit a one-week low of $1,217.86, and was on track for its third weekly decline running.

U.S. gold futures for August delivery were 0.6 percent down at $1,218.

The United States signalled on Thursday that it will push ahead on trade talks with Canada and Mexico after agreeing to suspend hostilities over tariffs with Europe in a fragile deal that could clear the way for renewed pressure on China.

Spot gold is expected to fall into a range of $1,206-$1,214 an ounce, said Reuters technical analyst Wang Tao.

In the physical markets, gold demand in India improved this week as domestic prices traded near a six-month low, while weaker rates in Singapore prompted a pick-up in demand there. Demand remained weak, however, in top consumer China as the yuan fell.

Among other precious metals, silver slipped by 0.1 percent to $15.35, heading for its seventh weekly decline.

Palladium was down 0.1 percent at $926.40 but was heading for its biggest weekly gain since the week of April 20.

Platinum dropped 0.3 percent to $818.