Equityworld Futures-Gold prices reached the lowest since February at the end of trading on Friday morning (12/02), extending losses after the biggest monthly decline in more than three years, after a surge in oil prices pushed up bond yields, pressing interest in gold as an alternative investment.
Spot gold was down 0.03 percent at $ 1,172.31 an ounce, after earlier hitting a 10-month high of $ 1,160.38.
While the price of US gold futures for February delivery closed down $ 1,169.40 per ounce.
The precious metal fell more than 8 percent in November, pressured by a surge in the dollar and Treasury yields after Donald Trump elected president last month, and with the expectation that the Federal Reserve preparing to lift interest rates for only the second time in a decade in December ,
Bond yields have surged since the election victory of the Republican candidate Trump shock, which led to speculation that the commitment to infrastructure spending will spur growth and inflation.
This pushed the dollar sharply higher, with the US dollar hit its highest since 2003 last week. Meanwhile retreated on Thursday, remained at a very high level.
Yields on 10-year US Treasury was 16.5 month high on Thursday. Germany leads the euro zone government bonds higher as 8 percent surge in oil prices pushed inflation expectations higher.
This results in a hefty outflow of gold holdings in the world’s largest exchange-backed ETF, listed on the New York, SPDR Gold Shares, said its holdings fell nearly 60 tonnes in November, the most of any month since May 2013.
Silver 0.7 percent lower at $ 16.35 per ounce, while platinum was down 0.7 percent at $ 904.75 after hitting its lowest since Feb. 8 at $ 895 earlier in the session.
Palladium was up 0.3 percent at $ 772.20, after outperformed other precious metals last month rose 24 percent, its best month since February 2008.
US dollar in late trading this morning weakened against a basket of currencies as traders booked profits after a steady economic data in November and caution ahead of non-farm payroll report on Friday.
Analyst Equityworld Futures Research Center estimates that the price of gold at the next trade has the potential to move up with the weakening US dollar. Prices are expected to move in the range of $ 1,174- $ 1.176 Resistance, whereas if the price drops will move in the range of $ 1,170- $ 1.168 Support.