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Gold Slips As Dollar Firms, Still Heading For Best Week In Five

Gold Slips As Dollar Firms, Still Heading For Best Week In Five

Gold prices fell on Friday as U.S. Treasury yields and the dollar held firm, although expectations of a big U.S. fiscal stimulus kept bullion on course for its biggest weekly gain in five.

Gold prices fell on Friday as U.S. Treasury yields and the dollar held firm, although expectations of a big U.S. fiscal stimulus kept bullion on course for its biggest weekly gain in five.

Spot gold fell 0.9% to $1,854.02 per ounce by 1039 GMT, retreating from its highest since Jan. 8 hit on Thursday. U.S. gold futures eased 0.5% to $1,855.90.

“The challenge for gold is it seems well supported around the $1,800 levels but the dollar seems to have pulled out of its lows and not convinced that its small recovery has run its course and that continues to be a drag (on gold),” said OANDA analyst Craig Erlam.

“Higher yields and U.S. dollar is driving the consolidation that we’re seeing in gold.”

Benchmark 10-year U.S. Treasury yields held firm above 1%, helping the dollar gain.

For the week, gold has gained 1.5% – the most since the week ended Dec. 18, as investors remained hopeful about the passage of U.S. President Joe Biden’s $1.9 trillion stimulus plan.

In other metals, platinum dipped 2.8% to $1,095.65. The auto-catalyst metal was still set to post its second consecutive weekly gain, up about 2%, after hitting its highest since Aug. 12, 2016 on Thursday.

“As a result, the price differential to gold narrowed for a time to $720 per troy ounce. The last time it was any lower was in February last year,” said Commerzbank analyst Carsten Fritsch in a note.

“There was no specific trigger for the price surge. The price may have been pushed up by technical buying after it exceeded its previous high at $1,130.”

Silver shed 1.8% to $25.47 an ounce, but was set to register its best week in five, up 1.5% so far. Palladium eased 0.1% to $2,360.03.

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