London — The price of gold eased on Friday from a seven-week high touched in the previous session, as strong US retail sales drove the dollar and US bond yields higher, but was still on track for a third straight weekly gain. The trigger for losses after New York opened was strong US economic data, which reinforced the prospect of the Federal Reserve raising rates this year, perhaps sooner than previously expected, traders said. That boosted the dollar, which makes dollar-denominated commodities more expensive for holders of other currencies. It also sparked a sell-off in treasuries that drove 30-year bond yields above 3%, making them cheaper and more lucrative for those looking to invest in risk-free assets. Gold is also seen as a risk-free asset, but it earns nothing and costs money to store and insure. Spot gold was down 0.1% at $1,194.62 an ounce by 3.38pm GMT, having fallen as low as $1,188.04 after the US data was published. It was still up 1.9% on the week. US gold futures we...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.