June 29, 2018
Gold gains as dollar dips, but set for worst month since Nov. 2016
(Reuters) - Gold rose early Friday after slipping to a more than six-month low in the previous session, as the dollar retreated from recent highs amid a rising euro, but the yellow metal was on track for its worst month since November 2016.
Spot gold was 0.2 percent higher at $1,250.90 an ounce, as of 0502 GMT. On Thursday, it touched $1,245.32, its lowest since December 13, 2017.
"We've seen a pop up in euro which put a bit of pressure on dollar, so gold is being bought. I don't think it is going to be
long lived. Europe will come in and sell and dollar is probably still firm," a Hong Kong-based trader said.
The yellow metal was on track for its third straight weekly decline, having slipped 1.4 percent so far this week. Spot gold
was down about 3.6 percent for the month, heading towards its worst monthly loss since Nov. 2016.
U.S. gold futures were up 0.1 percent at $1,252.50 an ounce.
The euro jumped more than a half cent on Friday after European Union leaders reached an agreement on migration, a
thorny issue that has threatened EU unity and the fate of German Chancellor Angela Merkel.
A stronger euro potentially boosts demand for gold by making dollar-priced bullion cheaper for European investors.
The dollar index against a basket of six major currencies was down 0.6 percent at 94.803, after having risen to
about one-year high on Thursday. But, the index was still up 5.4 percent this quarter, supported mainly by rising U.S. interest
rates and an improving U.S. economy.
The dollar is strong, so we expect gold prices to head down, said Brian Lan, managing director at dealer GoldSilver Central
"Gold is weak now and people are not looking to invest at this point of time."
The U.S. economy slowed more than previously estimated in the first quarter amid the weakest consumer spending in nearly
five years, but growth appears to have since regained momentum on the back of a robust labor market and tax cuts.
However, St. Louis Fed president James Bullard on Thursday said tight U.S. labor markets could bring unemployment rates for
blacks and Hispanics more in line with that of whites, another reason for the Federal Reserve to stop raising interest rates.
In other precious metals, spot silver gained about 1 percent at $16.10 an ounce. It was heading for its biggest weekly decline since the week-ending April 27.
Palladium rose 0.1 percent to $946 an ounce.
Platinum was nearly unchanged at $847.90 per ounce. It hit its lowest since Jan. 2016 at $837.30 earlier in the session. It was down so far 9 percent this quarter, its worst since the quarter-ending Dec. 2016.