NEW YORK: Gold slipped on Friday as the US dollar in which bullion is priced rebounded from two-week lows, but the safe-haven metal was still likely to post its first weekly gain in five on persistent worries over economic growth.
Spot gold reversed course to fall 0.3% to $1,836.15 per ounce by 1432 GMT, after hitting a one-week high earlier in the session. US gold futures fell 0.4% to $1,833.80.
Bullion, which hit a 3-1/2-month low of $1786.60 on Monday, has gained about 1.4% so far this week.
“Dollar has retreated this week and has helped gold rise. Also, once gold crossed the $1,785 mark, bargain hunters came in and that provided mild support,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
“However today, US equities are recovering and the slight uptick in dollar is pressuring gold.”
The dollar index, up 0.3%, was still headed for its worst week since early February.
“Bulls are touting safe-haven demand as being supportive for the precious metals, while bears counter that recent rising bond yields and a still-strong US dollar remain in their camp,” said Kitco senior analyst Jim Wycoff in a note.
“Both bulls and bears need some new fundamental news to help drive prices.”
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