Gold slipped by 1 percent to a one-week low last Friday and was heading for its worst week in six-months as investors sought safety in the US dollar, lifting the currency to multi-week highs.
A stronger dollar makes gold costlier for holders of other currencies. Spot gold was down 0,7 percent at $1,495.02 an ounce by 1256 GMT after touching its lowest since September 19 at $1,490.20. The metal has retreated by nearly 1,5 percent over the week. US gold futures dipped 0,8 percent to $1,502.70 an ounce.
“The main reason gold is down is because the US dollar is strengthening to its highest level against the euro in more than two years. However, we have seen massive exchange-traded fund inflows into gold in the past few days. This shows people are buying on dips and we may see further buying with prices now below $1,500 because the outlook for gold is still bullish,” said Commerzbank analyst Eugen Weinberg.
The dollar index against a basket of rivals climbed to a three-week peak as heightened risks from political tensions in the United States strengthened its safe-haven appeal. — Reuters.