|Published : 10 Mar 2017, 12:48:04|
Gold slips below key $1,200 level
Gold fell below the key level of $1,200 an ounce on Friday and was on track for its worst week in four months, pressured by a stronger dollar ahead of the closely-watched U.S. non-farm payrolls report.
Spot gold was down 0.2 per cent at $1,197.90 per ounce at 0410 GMT, after touching $1,197.02 earlier in the session, its weakest since Jan. 31.
The yellow metal has shed about 3.0 per cent so far this week in what could be its biggest percentage decline since the week ended Nov. 11, 2016.
US gold futures fell 0.4 per cent to $1,198.2 an ounce.
The dollar firmed to six-week highs against the yen as investors awaited US jobs data that is likely to reinforce expectations of a Federal Reserve rate hike next week.
The dollar index was up 0.1 per cent at 101.89.
Higher interest rates typically pressure gold prices because they raise the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
Spot gold may break a support at $1,198 per ounce and fall into a zone of $1,187-$1,193, according to Reuters technical analyst Wang Tao.
Meanwhile, holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.32 per cent on Thursday.
In other precious metals, silver was down 0.3 per cent at $16.89 per ounce, after hitting its lowest since Jan. 27 at $16.83.
Platinum was mostly unchanged at $932.49 per ounce, while palladium slipped 0.2 per cent to $745.10, according to Reuters.