Gold prices struggled for momentum on Friday as a rally in the US dollar negated safe-haven demand caused by a lack of progress in peace talks between Russia and Ukraine, while investors awaited US jobs data that could provide clues about tightening policy.
Spot gold was flat at $1,937.55 an ounce, as of 0425 GMT, but was on track to end the week down more than 1%. And US gold futures fell 0.5% to $ 1944.20.
“Gold is unchanged in Asia, with no indications of safe haven buying over the weekend, another ominous sign, especially with the US dollar continuing to rise today,” said OANDA chief analyst Jeffrey Haley.
“Gold is still trapped in a range between $1,920 and $1,950, but its inability to rally with lower US dollar and yields this week is a concern and risks remain tilted to the downside.”
The dollar index moved higher from a nearly one-month low hit earlier in the week, making gold more expensive for other currency holders.
Yields on benchmark 10-year US Treasury bonds have fallen from three-year highs. Low yields reduce the opportunity cost of holding non-yielding gold.
Investors were looking to US jobs data for March, due later in the day, for wage inflation and indications of the US Federal Reserve’s monetary policy stance.
European buyers of Russian gas faced a deadline to start paying in rubles on Friday, while negotiations aimed at ending the five-week war were due to resume even as Ukraine braced for more attacks in the south and east.
The spot may test support at $1,924 an ounce, with a good chance of a breakout below that level and a drop towards $1,898, according to Reuters technical analyst Wang Tao.
Spot silver rose 0.2% to $24.82 an ounce.
Platinum rose 0.9 percent to $991.67, while palladium rose 0.9 percent to $2,282.94. However, both metals were on track for their fourth consecutive weekly loss.
(Reporting by Asha Cestla in Bengaluru; Editing by Sherry Jacob Phillips)
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