Gold stays on track for first weekly loss in three G

Spot prices for metal down 0.4% last week

old firmed yesterday, holding above the key $1,300 level on concerns over economic growth in Europe and elsewhere, but headed for its first weekly loss in three as the dollar strengthened against the euro.

Spot gold was up 0.2 per cent at $1,312.67 per ounce at 1237 GMT, after hitting its lowest since January 29 at $1,302.11 on Thursday. US gold futures were also up 0.2 per cent at $1,316.30.

However, while bullion has risen about 13 per cent since touching over 1-1/2-year lows in August, mostly due to volatile stock markets and a dovish US Federal Reserve, a strong dollar has driven gold down about 0.4 per cent last week.

Data pointing to an economic slowdown in Europe has weighed on the euro. The resulting dollar strength has pressured gold even as economic concerns supported interest in the metal as a haven from risk.

“The major headwind is the pretty resilient dollar at the moment,” said Philip Newman, director at Metals Focus. “There are quite a few concerns — economically, financially and politically — and yesterday, there was a downgrade in (the) European growth (forecast).” The dollar index, which tracks the greenback against major currencies, was on course for its first weekly gain in three and was trading close to a twoweek high.

Against the euro, the dollar was set for its biggest weekly rise in four months. Gold in euros hit its highest since May 2017, at €1,157.80 per ounce.

Meanwhile, holdings in the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, fell over 1 per cent for the week.