Representational file photo.
Singapore: Gold prices fell in early Asian trading on Friday, heading for their largest weekly loss in six months, as a stronger US dollar and reduced safe-haven demand weighed on the precious metal. The decline comes amid easing trade tensions between the United States and China.
Spot gold dipped 0.1% to 3,235.59 USD per ounce, down more than 2% since the start of the week - putting it on track for its worst weekly performance since November.
Conversely, US gold futures rose 0.4% to 3,239.20 USD per ounce.
The drop in gold was driven in part by a 0.4% rise in the US dollar index since the start of the week, marking its fourth consecutive weekly gain. A stronger dollar makes gold more expensive for holders of other currencies, reducing its appeal.
On the trade front, a temporary agreement between the US and China to roll back mutual tariffs helped ease fears of escalating trade conflict, diminishing investor demand for safe-haven assets like gold.
Among other precious metals, spot silver fell 0.2% to 32.61 USD per ounce, while platinum gained 0.3% to reach 992.55. USD Palladium dropped 0.7% to 961.50 USD per ounce.
Gold prices already dropped to their lowest level in over a month on Wednesday, as markets awaited the release of the US Producer Price Index (PPI) data for further clues on the economic outlook.
