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Gold prices slips, decline 2.5% this week since May

Thousands in India have sold jewellery in recent weeks with local gold prices hitting a near 3-year top

Policy Pulse
Publish Date: Jul 15 2016 2:21PM | Updated Date: Jul 15 2016 2:21PM

Gold prices slips, decline 2.5% this week since May

Gold fell on a firmer dollar and surging Asian shares and was set for its first weekly decline since May, after dipping to a two-week low in the previous session on Friday.

 

Gold fell early on Friday on a firmer dollar and surging Asian shares and was set for its first weekly decline since May, after dipping to a two-week low in the previous session. Spot gold edged 0.4 percent lower to $1,329.40 per ounce by 0104 GMT. Bullion fell about 0.6 percent on Thursday and hit a low of $1,319.82, its worst since June 30. 

 

The metal has fallen about 2.5 percent so far this week and is on track for its first weekly decline in seven weeks. US gold slipped 0.2 percent to $1,330.20 an ounce.

 

Asian shares rose to eight-month highs on Friday, on track for solid weekly gains, as record highs on Wall Street offset the impact on sentiment of an attack in France. The dollar edged up 0.1 percent to 105.47 yen, while the dollar index, which measures the greenback against a basket of currencies held steady at 96.116.

 

The Bank of England wrong-footed investors by keeping interest rates on hold on Thursday, but held out the prospect of a stimulus package soon to help the economy cope with Britain’s decision to leave the European Union. Federal Reserve policymakers appear to be in no hurry to raise U.S. interest rates despite signs that the U.S. economy is near full employment, with two more top Fed officials expressing that view on Thursday. 

 

The number of Americans filing for unemployment benefits unexpectedly held steady near a 43-year low last week, pointing to further momentum in the labor market after job growth surged in June. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.25 percent to 962.85 tonnes on Thursday. 

 

Thousands in India have sold their jewellery in recent weeks with local gold prices hitting a near three-year top.  Azerbaijan’s top gold producer Anglo Asian Mining said on Thursday its first-half output fell 5.9 percent to 33,837 ounces but that it was keeping its 2016 production target unchanged at 73,000 to 77,000 ounces.