Gold firmed above $1,150 an ounce on Friday as the dollar nursed losses after an extended rally, but the metal was still headed for its sixth weekly dip in seven on concerns that US interest rates would increase soon.
Spot gold edged up 0.4 per cent to $1,157.40 by 0041 GMT, after posting nine straight sessions of losses.
The metal is down nearly 1 percent for the week, after earlier falling to its lowest in more than three months at $1,147.10.
Gold has taken a beating since a stronger-than-expected US jobs report last week that stoked speculation the US Federal Reserve would hike interest rates sooner than later.
Markets believe higher rates would dent the demand for assets that don’t pay interest such as gold.
Strong dollar
Adding to the concerns was the strength in the dollar, which climbed to its highest in nearly 12 years this week before profit-taking prompted some losses. The dollar index, however, is still on track to end the week up more than 1 per cent, extending last week’s 2.5 per cent rally.
A stronger greenback dents bullion’s safe-haven appeal, and makes it more expensive for the holders of other currencies.
SPDR Gold Trust
In a reflection of investor sentiment, holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.28 per cent to 750.95 tonnes on Thursday — the lowest since late January.
Other precious metals have also taken a hit along with gold. Silver is on track for a second straight weekly fall, while palladium is on course for its worst week since mid-January. Platinum prices, which fell to their lowest since 2009 this week, were poised for a seventh weekly fall in eight.