Gold languished near its lowest level in eight months on Friday and is set to extend its losing run to a fourth week, pressured by a firmer dollar as expectations grow that the Federal Reserve will raise interest rates this year. Platinum and palladium held near multi-year lows, with market players warning of more losses in precious metals if the dollar strengthens further and equities advance.
Spot gold was little changed at $1,144.80 an ounce by 0621 GMT, not far above Thursday's trough of $1,142.10, its lowest since November 2014. Gold has lost nearly 2 percent for the week. "We remain nervous about gold and would not be surprised to see a rather sizable, stop-induced fall to take place if and when we significantly pierce the $1,141 support on the next downswing," INTL FCStone analyst Edward Meir said.
"Not only are the charts looking shaky, but we are also seeing the stronger dollar and firmer global equity markets reassert themselves, much as they did back in February and March." Gold is down for a third year running, dropping more than 3 percent so far this year, with the non-interest bearing asset losing favour against an impending US rate hike.