Gold is down on the strong dollar and set for a weekly decline
Gold is down about 0.7% so far this week, but analysts are optimistic about gold’s prospects in 2019
Bengaluru — Gold eased for the second straight session to hit a one-week low on Friday as the dollar rose, putting the metal on track to post its biggest weekly fall in five ahead of the US Federal Reserve’s interest rate decision next week. Spot gold was 0.3% lower at $1,238.86 an ounce as of 10.41am GMT. Earlier in the session, prices hit their lowest since December 6 at $1,236.80. The metal is down about 0.7% so far this week. US gold futures were down 0.4% at $1,242.80 an ounce. The dollar gained as investors became nervous about an economic slowdown in China which was further supported by weakness in the euro and pound. A firm dollar makes gold more expensive for holders of other currencies. “It seems to be a broader market sentiment as there is a drop across the precious complex ... The dollar has strengthened and that’s being reflected in gold’s downward movement,” said Capital Economics analyst Ross Strachan. Markets are awaiting the Federal Open Market Committee (FOMC) meet...
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