LONDON: Gold fell on Friday, as the dollar steadied above a five-month low, but the metal remained on track for a weekly gain after the Federal Reserve scaled down rate hike expectations.
Spot gold was down 0.3 per cent at $1,252.91 an ounce by 1457 GMT, while US gold fell 0.9pc to $1,253.80 an ounce. Spot gold was up around 0.4pc on the week.
“There has been a bit of selling into the rally in the past couple of days but on whole gold has managed to hang on to its gains,” Mitsubishi Corp analyst Jonathan Butler said.
“With the dovish overall macro outlook — the Fed’s more dovish stance and ECB and Bank of Japan also pursuing very aggressive stimulus policies — affecting the strength of the dollar and US Treasury yields, gold should benefit.”
A low interest rate environment tends to decrease the opportunity cost of holding non-yielding bullion.
Silver rose more than 1pc to its highest since late October at $16.13. It was up 4pc this week.
Platinum fell 1.4pc to $966.55 and palladium 0.9pc to $585.55.
Courtesy : Dawn News