Gold dips to one-week low as dollar bounces on strong data
* Gold down about 0.8 percent so far this week
* Palladium set for third straight weekly gain
* Platinum on track for sixth straight weekly decline
* GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl
By Swati Verma
BENGALURU, Dec 14 (Reuters) - Gold fell to its lowest in
over a week on Friday and was on track to mark its biggest
weekly decline in more than a month, as the dollar climbed on
robust U.S. economic data ahead of a U.S. Federal Reserve
meeting next week.
Spot gold fell 0.4 percent to $1,237.60 per ounce as
of 1:41 p.m. EST (1841 GMT). Earlier in the session, prices hit
their lowest since Dec. 4 at $1,232.39. The yellow metal is down
about 0.8 percent so far this week.
U.S. gold futures settled down 0.5 percent, at
The dollar rose to a 19-month high after data showed U.S.
consumer spending appeared to gather momentum while industrial
production rebounded in November.
"The strength of the dollar has weighed across the complex.
The key driver (of prices) in the next few sessions is going to
be the markets' expectations for the Fed," said Suki Cooper,
precious metals analyst at Standard Chartered Bank.
Markets are awaiting the Federal Open Market Committee
(FOMC) meeting on Dec. 18-19, at which the U.S. central bank is
widely expected to raise interest rates. The focus, however,
would be on the outlook for 2019.
"With the Fed rate hike next week, any gold price rise will
be hampered by expected dollar strength," said Ronan Manly, a
precious metals analyst at Singapore-based dealer BullionStar.
Gold prices rose to a five-month peak of $1,250.55 an ounce
on Monday, but has given up all the gains as the dollar
strengthened against a basket of major currencies.
"With China's economy slowing, along with Germany and parts
of the European Union, one would expect interest in the gold
market," Walter Pehowich, executive vice president of investment
services at Dillon Gage Metals, wrote in a note.
"But with the dollar being so strong ... it's going to take
a major news story to bring the price of gold back in favor with
Among other precious metals, spot palladium was down
1.9 percent at $1,236.50 per ounce, after hitting an all-time
high of $1,269.25 on Thursday. Despite Friday's drop, the metal
was on track to mark its third week of gains with prices up
about 1 percent so far this week.
"The palladium market is still set to be in deficit in 2019,
but you could see some profit-taking and some concerns over the
auto market weighing on the palladium prices into the year end,"
Standard Chartered Bank's Cooper said.
Silver fell 1.2 percent to $14.58 per ounce.
Platinum was down 0.7 percent at $787.70 per ounce
and was set to post a sixth straight weekly decline.
(Reporting by Swati Verma and Nallur Sethuraman; Additional
reporting by Eileen Soreng in Bengaluru; Editing by Richard
First Published: 2018-12-14 03:57:33
Updated 2018-12-14 20:56:11
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.