Gold set for first weekly dip in three weeks on higher dollar, yields
By Nakul Iyer (Reuters) - Gold prices edged up slightly on Friday but a stronger dollar and a rise in U.S. Treasury yields put the metal on course for its first weekly decline in three.
By Nakul Iyer
(Reuters) - Gold prices edged up slightly on Friday but a stronger dollar and a rise in U.S. Treasury yields put the metal on course for its first weekly decline in three.
Spot gold rose 0.4% to $1,733.26 per ounce at 12:19 p.m EDT (1619 GMT) but it was down 0.7% this week. U.S. gold futures were up 0.4% at $1,732.60.
"Dips are being bought and rallies are being sold into (in the gold market)... there are clearly two definitive sides of a coin and this is the main focal point," David Meger, director of metals trading at High Ridge Futures, said.
A firmer dollar and rising yields pressuring gold are one side of the coin and rising coronavirus cases and the Fed's low-interest rate policy lifting it are another, Meger added, noting it remains unclear which side will ultimately prevail.
Gold's modest gains came despite a firmer dollar and an uptick in benchmark yields, that have weighed on its appeal recently.
A stronger dollar makes holding greenback-denominated bullion more expensive for those holding other currencies, while higher yields raise the non-yielding metal's opportunity cost.
But, "beyond the near term, the macro backdrop is set to remain supportive of gold as the dollar weakening trend resumes and we expect real yields to remain negative," Standard Chartered analyst Suki Cooper said in a note.
In the near term, gold lacks a macro catalyst to drive it higher but physical demand should limit its downside, she added, predicting it to average $1,775 in the second quarter.
The biggest gold-backed exchange traded fund, SPDR Gold Trust, has seen outflows of more than 140 tonnes so far this year.
Among other precious metals, silver rose 0.1% to $25.04, palladium gained 2.4% to $2,671.70 and platinum was up 2.4% at $1,174.89.
(Reporting by Brijesh Patel and Nakul Iyer in Bengaluru; Editing by Marguerita Choy and Nick Macfie)
This story has not been edited by Firstpost staff and is generated by auto-feed.
CARACAS (Reuters) - Human rights groups from Venezuela and Colombia on Wednesday called on the United Nations to appoint a special envoy to address the humanitarian crisis caused by clashes between Venezuelan troops and Colombian armed groups near the countries' border. Colombian officials estimate that some 4,000 people have fled Venezuela for Colombia since March 21 following a military offensive in Venezuela's Apure state.
By Anton Zverev and Andrew Osborn MOSCOW (Reuters) - Jailed Kremlin critic Alexei Navalny went on hunger strike on Wednesday in an attempt to force the prison holding him outside Moscow to provide him with proper medical care for what he said was acute pain in his back and legs. The fate of Navalny, one of President Vladimir Putin's most prominent critics, is in focus after he said last week that being woken up by a guard every hour during the night amounted to torture and that his appeals for medical treatment had been ignored. In a handwritten letter addressed to the governor of his prison which was posted to social media by his team on Wednesday, Navalny said daily requests for a doctor of his choice to examine him and for proper medicine had been ignored
By Stephanie van den Berg THE HAGUE (Reuters) - The International Criminal Court on Wednesday upheld its 2019 acquittal of former Ivory Coast President Laurent Gbagbo on charges of crimes against humanity during post-election violence and ordered all conditions of his release be removed. The decision may open the way for Gbagbo, 75, who has been living in Belgium, to return to Ivory Coast