Gold prices rise as dollar retreats from six-month peaks
Investing.com-- Gold prices rose slightly from a 10-day low on Friday, taking some relief as the dollar retreated from a near six-month high, while weak data from Japan and fears of worsening U.S.-China tensions also drove some safe haven demand for the yellow metal.
But gold prices were still headed for a weekly loss, coming under pressure from renewed concerns over rising interest rates after strong U.S. labor market and inflation readings this week.
A spike in the dollar and Treasury yields dented gold through the week, although some profit taking in the greenback benefited bullion prices on Friday. The dollar fell nearly 0.2% against a basket of currencies, while 10-year Treasury yields sank 0.8%.
Spot gold rose 0.3% to $1,925.04 an ounce, while gold futures expiring in December rose 0.3% to $1,948.95 an ounce by 01:08 ET (05:08 GMT). Both instruments were down around 0.7% for the week.
Worsening rhetoric between Washington and Beijing, especially after reports suggested that China asked government officials to stop using Apple’s iPhone, spurred some safe haven positioning in gold.
Markets feared more disruptions in global trade stemming from a renewed Sino-U.S. trade war, as some U.S. lawmakers also called for a blanket ban on tech exports to China.
Strong readings on jobless claims and service sector prices, released earlier this week, pushed up fears that the Federal Reserve will have more impetus to keep rates high.
While the central bank is widely expected to keep rates steady at over 20-year highs later this month, it is also expected to largely maintain its hawkish messaging amid sticky inflation and a strong labor market.
The prospect of higher U.S. rates bodes poorly for gold, given that higher rates
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