Gold soared higher on Friday, December 1, as the dollar eased, but was still trading near the 3-1/2-week low touched in the previous session, with investors flocking to riskier assets amid a surge in US equities.
Spot gold was up 0.1 per cent at $1,275.81 an ounce at 0830 GMT. On Thursday, it fell 0.7 per cent to touch its lowest since Nov. 6 at $1,270.11. The yellow metal is down 0.9 per cent for the week.
US gold futures gained 0.2 per cent to $1,275.30.
“There is a positive mood in the equity market. The US dollar has been strong too (overall). So, it is not beneficial for investors to invest in the commodity market now,” said Dick Poon, general manager at Heraeus Metals Hong Kong Limited.
“People are focusing on stocks in the short-term and are also awaiting an interest rate hike by the US Federal Reserve.”
Spot gold may break a support at $1,272 per ounce and fall more towards the next support at $1,263.35, as suggested by a Fibonacci retracement analysis and a wedge, according to Reuters technical analyst Wang Tao.
“While gold remained in a tight range for much of November, silver is looking much sorrier on the charts and may have more downside,” INTL FCStone analyst Edward Meir said.
A lack of clear drivers has kept gold between $1,265 and $1,300 an ounce throughout November, its narrowest monthly range in 12 years.
Silver rose 0.1 per cent at $16.43 after matching an Oct. 6 low of $16.30 an ounce in the previous session. It was down 3.2 per cent for the week.
Palladium rose 0.5 per cent to $1,011.72 and was up 1.5 per cent for the week. Platinum was up 0.1 per cent at $941.80 an ounce, Economic Times reports.