You are using an older browser version. Please use a supported version for the best MSN experience.

Global gold prices set for worst week in seven as investors opt for riskier assets

LiveMint logoLiveMint 28-04-2017 Swati Verma

Bengaluru: Gold was little changed on Friday and poised for the biggest weekly fall in seven weeks as investors sought out higher returns than those from holding the non-interest bearing yellow metal by buying into riskier assets .

Spot gold was up 0.1% at $1,264.81 per ounce, as of 8.42am, while US gold futures were steady at $1,266.30. Gold is on track for a weekly drop of 1.5%, the largest weekly percentage fall since the week of March 10, but is heading towards a gain of about 1.3% for the month.

“Technically gold has not had a great week ... there seems to be some pressure as the risk-on sentiment is still on despite Trump’s tax plans disappointing and especially situation in North Korea does not seem to be inflamed,” a Hong-Kong based trader said.

On Wednesday, President Donald Trump proposed deep US tax cuts, mainly for businesses, that would make the federal deficit balloon if enacted, drawing a cautious welcome from fiscal conservatives and financial markets.

Asian stocks inched higher on Friday and looked set to close a strong week on a positive note.

“People are pulling out of gold and moving to risky assets like shares and currencies to make profits,” said Brian Lan, managing director at gold dealer GoldSilver Central in Singapore.

The dollar edged up in Asian trading on Friday. The dollar index rose 0.1% to 99.171.

“At the moment there are not any major events until the second round of French elections (on May 7) so they are looking at other ways to get more returns,” said Lan.

Holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.1% to 853.36 tonnes on Thursday. Holdings have fallen over 6 tonnes since Tuesday.

“People are probably going to buy gold around $1,250 and sell it around $1,280. There is nothing on the news to aggressively buy gold at this point of time,” the Hong-Kong based trader added.

Silver was up 0.2% at $17.26 an ounce, after touching an 1-1/2 month low of $17.19 in the last session. Silver was on track to end the week down over 3%, and was headed for the worst month since November.

Platinum gained 0.5% at $944.55 an ounce and was heading towards its worst week in seven. Palladium was down 0.2% at $813.25 after hitting $817.55 an ounce, the highest since March 2015. It was the only weekly gainer among the precious metals, set for a 2.8% rise this week. Reuters

More From LiveMint

image beaconimage beaconimage beacon