🚀 ProPicks AI Hits +34.9% Return!Read Now

PRECIOUS-Gold slips as dollar firms but still set for first weekly gain in three

Published 22/01/2021, 10:01 pm
XAU/USD
-
XAG/USD
-
CBKG
-
GC
-
SI
-
PA
-
PL
-
US10YT=X
-

* Silver poised for best week in five, up 1.5% so far

* Platinum slips from over 4-yr high, but set for 2nd weekly gain

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)

By Asha Sistla

Jan 22 (Reuters) - Gold prices fell more than 1% on Friday as U.S. Treasury yields and the dollar held firm, although expectations of a big U.S. fiscal stimulus kept bullion on course for its first weekly gain in three.

Spot gold XAU= had dipped 1.3% to $1,845.21 per ounce by 1233 GMT, retreating from its highest since Jan. 8 hit on Thursday. U.S. gold futures GCv1 fell 0.9% to $1,849.50.

"The challenge for gold is it seems well supported around the $1,800 levels but the dollar seems to have pulled out of its lows and not convinced that its small recovery has run its course and that continues to be a drag (on gold)," said OANDA analyst Craig Erlam.

"Higher yields and U.S. dollar is driving the consolidation that we're seeing in gold."

Benchmark 10-year U.S. Treasury yields US10YT=RR held firm above 1%, helping the dollar gain. US/ USD/ the week, gold is up 0.8% as investors remain hopeful about the passage of U.S. President Joe Biden's $1.9 trillion stimulus plan. other metals, platinum XPT= dipped 3.2% to $1,090.98. The auto-catalyst metal was still set to post its second consecutive weekly gain, up 1.3%, after hitting its highest since Aug. 12, 2016 on Thursday.

"As a result, the price differential to gold narrowed for a time to $720 per troy ounce. The last time it was any lower was in February last year," said Commerzbank (DE:CBKG) analyst Carsten Fritsch in a note.

"There was no specific trigger for the price surge. The price may have been pushed up by technical buying after it exceeded its previous high at $1,130."

Silver XAG= shed 2.8% to $25.22 an ounce, but was set to register a weekly gain after falling for the last two weeks, up 1.7% so far. Palladium XPD= fell 0.3% to $2,354.61.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.