Spot gold was steady on Friday but is set to finish the week stuck near its cheapest in more than five years as the metal struggles against a stronger dollar ahead of a widely expected US rate rise next month.
Spot gold was steady on Friday but is set to finish the week stuck near its cheapest in more than five years as the metal struggles against a stronger dollar ahead of a widely expected U.S. rate rise next month.
Spot gold was little changed at $1,081.50 an ounce by 0041 GMT. Prices hit the weakest in more than five years at $1,064.95 an ounce on Wednesday and are set to close the week down just 0.2 percent.
U.S. gold edged up by 0.3 percent to $1,080.70 an ounce.
New U.S. applications for unemployment benefits fell last week while a gauge of U.S. economic activity rebounded in October, signs of a healthy labor market and economy that could give the Federal Reserve confidence to raise interest rates next month.
Chinese banks are growing alarmed by a rising number of defaults among jewellery manufacturers, prompting them to review new gold lending more carefully in the world’s biggest consumer, according to sources with direct knowledge of the issue.
The dollar weakened across the board on Thursday after rising for four straight sessions, as investors cashed in recent gains driven by widespread expectations of a U.S. Federal Reserve interest rate increase next month.