Gold falls on strong dollar
london — Gold fell on Friday, retreating further from this week’s three-month high, as US President Donald Trump’s promise of a major tax announcement boosted the dollar and upbeat data fuelled talk of a near-term rise in US interest rates.
Disappointment among some buyers at gold’s failure to break above the $1,245 an ounce level it tested twice this week has also fed into the pull-back, analysts said.
Spot gold was down 0.5 per cent at $1,224.98 an ounce at 1235 GMT, while US gold futures for April delivery were $9.80 lower at $1,227.00. On Wednesday spot gold reached its highest since mid-November at $1,244.67.
The dollar reached a 10-day high against a currency basket on Friday and was on course for its best week since mid-December as Trump’s pledge to announce a major tax plan within weeks cooled some market nerves, reinvigorating dollar bulls. “Obviously the dollar has recovered a bit of strength in the past day or so, which has weighed on precious metals,” Mitsubishi analyst Jonathan Butler said.
“The move above $1,220 was pretty convincing, but we didn’t get to the next level at $1,249$1,250, which would have been confirmation of that bullish trend going back to the start of the year,” he said.
“What we’ve seen is possibly some disappointed investors turning tail and booking some profit.” — Reuters