Gold Posted Biggest Weekly Loss This Year

Published on: 23 Feb, 2018

Gold price was traded lower on Friday due to a strong U.S. dollar.

Spot gold fell 0.2 percent at $1,329.23 during Friday’s trading session. While U.S. Gold future for April delivery was traded 0.12 percent lower to $1,331.10 per ounce.

This is the worst weekly decline for gold price in 2-1/2 months. The yellow metal fell 1.7 percent for the week.

A stronger dollar is one of the factor that drive gold price lower. The ICE U.S. Dollar Index rose 0.2 percent for the day and about 0.9% for the week.

Gold price is sensitive to the U.S. dollar as a weaker dollar makes other currencies holders cheaper to buy dollar-denominated commodities.

The gold price is under pressure is also due to expectation for further interest-rate increase this year.

"Despite the hawkish stance by the Fed, which drove this move in the gold price, we are still above the $1,300 mark," said Think Markets' chief market analyst Naeem Aslam, flagging a key support level. "We think some participants were surprised and unprepared, which created the largest weekly loss for this year." On the physical gold markets, traders said buying was muted in China after the week-long Lunar New Year holiday that closed financial markets until Thursday.


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Marco Zhou



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