(MENAFN– ecpulse)
Gold headed for a weekly loss after sinking to a 12-week low as a strong dollar and an optimistic view of the U.S. economy prompted selling in bullion.
Gold lost ground overnight weighed by the impact of the European Central Bank’s more accommodative policy stance. As of 10:18 GMT +3, spot gold fell 0.13%, 1.60 points to trade at $ 1,264.60 after setting an intraday low at $1,257.14.
The metal is under pressure as the euro languished near a 14-month low versus the dollar on Friday as investors weighed the ECB’s surprise decision to cut interest rates in addition to announcing two bond purchasing programs.
A stronger greenback is a setback for dollar-denominated gold as it makes the metal more expensive for users of other currencies. The USDIX is currently trading at 83.85.
Other precious metals were also under pressure due to the dollar move:
- Silver fell 0.02% to trade at $ 19.10
- Platinum fell 0.24% to $ 1,405.25
- Palladium declined 0.30% to $ 886.70
Investors will be closely watching U.S. non-farm payrolls data due later in the day, for further clues about the world`s largest economy and the timing of the Federal Reserve`s move to raise interest rates.
Data today may show payrolls climbed by more than 200,000 in August for a seventh straight month.
Data in the previous session showed U.S. private companies hired workers at a steady level in August and services sector activity accelerated to a 6-1/2-year high.
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