Precious-Gold inched down on Friday on the rebound in the U.S. dollar, yet the metal is trying to record its third consecutive weekly gain this week.
The metal did some correction after hitting a 3-1/2 month high on Tuesday as the recent rally has encouraged some profit taking by investors on signs U.S. recovery is losing momentum.
The key reason is perhaps the rebound in the dollar, which pulled back from its lowest level in seven weeks as Fed minutes revealed policymakers would cut their monthly bond purchases by $10-billion steps unless the economy shows any deterioration in economic data.
In the testimony, Fed Chairman Janet Yellen said the Fed was on track to keep slashing its stimulus.
Investors, therefore, will remain alert to U.S. fundamentals, as it would determine the speed of stimulus cut.
Later in the day, U.S. existing home sales report may show a 4.1 percent slump last month following a 1.0 percent advance in December.
Meanwhile, the yellow metal is trading around $1322.21 an ounce after hitting a high of $1322.87 and a low of $1315.98.
A breach of $1330 is needed to ensure the continuation of the metal’s rally, which began this year after last year’s 28 percent drop.
Over the previous eight weeks, gold managed to end seven of them on a gain taking advantage of its haven demand amid the sell-off in equity markets.
The U.S. dollar surged for a third day against a basket of major currencies to hover around 80.40 after opening at 80.35, according to the dollar index.
Crude oil for April’s delivery retreated to trade around $102.63 a barrel after setting a high of $102.89.