Gold Prices Slip but Trades Near 10-week High; Dollar Unchanged

© Reuters. Gold prices slipped on Friday© Reuters. Gold prices slipped on Friday

Investing.com – Gold prices slipped on Friday but hovered near 10-week high after gaining 3% in the previous session, its biggest one-day gain in more than two years.

December slipped 0.3% and traded at $1,224.30 on the COMEX division of the New York Mercantile Exchange by 1:48 AM ET (05:48 GMT).

Gold prices recorded its largest daily percentage gain on Thursday since June 2016 as global stock markets extended losses. Fears over rising bond yields also drove traders toward safe-haven assets.

However, analysts expect rising interest rates would likely remain a concern for gold prices. Interest rate increases and higher U.S. bond yields dampen appeal for gold, which offers no yield. They also tend to boost the dollar.

“The sinking of global markets has led people to seek gold as a safe haven. However, in Asian hours today we have seen some profit-taking,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

“With prices breaking the resistant $1,200 level and also crossing $1,225, it could be a signal that gold market is on the upside. Especially, given that during November and December we also see increased physical buying.”

On Friday, the that tracks the greenback against a basket of other currencies was unchanged at 94.69.

The U.S. dollar is now near its lowest level in nearly two weeks as falling U.S. treasury yields and further losses on global equities weighed on market sentiments.

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Source: Investing.com