Gold prices decline with the rise of the Dollar

 


Gold prices decreased during trading on Friday, as the dollar rose, but the yellow metal is about to record its best weekly performance since late July.

Spot gold fell 0.5 percent to 1939.10 dollars an ounce, by 06:18 GMT. Prices rose 2.4 percent on Thursday thanks to the dollar’s decline, making it on track to achieve its best weekly performance since late July.

While US gold futures fell 0.3 percent to 1940.20 dollars an ounce.

The decline in gold prices comes at a time when the dollar index is rising, increasing 0.2 percent, which reduces the attractiveness of gold to holders of other currencies.

Market analyst Kyle Roda said that over the past week, the dynamics of the gold market shifted from a hedge to stimulus to a mere beneficiary of the dollar, “and because of that trading, it ebbed a bit.”