Gold, on Friday, February 10, dipped retreated further from the week’s three-month high, as U.S. President Donald Trump’s promise of a major tax announcement boosted the dollar.
Disappointment among some buyers at gold’s failure to break above the $1,245 an ounce level it tested twice this week also fed into the pull-back, analysts said.
Spot gold was down 0.3 percent at $1,227.33 an ounce at 1445 GMT, while U.S. gold futures for April delivery were $8.40 lower at $1,228.40. On Wednesday, spot gold reached its highest since mid-November at $1,244.67.
The dollar reached a 10-day high against a currency basket on Friday and was on course for its best week since mid-December as Trump’s pledge to announce a major tax plan within weeks cooled some market nerves, reinvigorating dollar bulls.
Gold prices remain on track for a second weekly gain, up 0.6 percent from late last Friday. Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
Silver was up 0.5 percent at $17.73 an ounce, while palladium was 1.1 percent higher at $778.20. Platinum was down 1.4 percent at $997.75, having touched its highest since Oct. 3 on Thursday at $1,028.50, Reuters reports.
